PayPal, the Bay Area tech giant, has unveiled plans for a significant workforce reduction, marking a 9% cut almost exactly a year after a similar layoff round. CEO Alex Chriss conveyed the decision to employees in a Tuesday email, emphasizing the necessity of the move. The reduction will encompass both layoffs and the elimination of open positions, occurring gradually over the course of the year. According to a company spokesperson, 311 employees based in San Jose are affected by the layoffs. Chriss, who assumed the role of CEO in September, justified the decision as crucial for optimizing business operations and facilitating agile responses to customer needs. Despite reporting a $1 billion profit from July to September, the company aims to right-size its operations for sustained growth. PayPal, which includes subsidiaries like Venmo and Xoom, had 29,900 employees at the end of 2022. The announced 9% cut suggests approximately 2,500 jobs will be affected. Affected employees will be notified by the end of the week, with many expressing their situations on platforms like LinkedIn. This announcement follows a trend of layoffs in the Bay Area’s tech industry, with companies like Google, Discord, eBay, Unity Software, and Twitch also implementing workforce reductions in January, signaling a challenging start for the sector in 2024.