“We don’t intend to do any layoffs as a result of Covid-19,” CEO Dan Schulman said on CNBC. “This is the right thing to step up, to make sure they know that we’ve got their back. If they’re sick, we pay them. If an office closes, we pay them."
Schulman added that “we really need to be sure that we have their health and their finances at heart as we deal with this crisis right now."
San Jose-based PayPal is the latest company to make a similar pledge to its employees. Shares were off slightly to $96.70.
Bank of America (BAC) - Get Report recently announced that it wouldn't cut any jobs this year as a result of the coronavirus as did Morgan Stanley (MS) - Get Report, Starbucks (SBUX) - Get Report, Citigroup (C) - Get Report and Wells Fargo (WFC) - Get Report.
In addition, PayPal is allowing its business customers to push back repayments on business loans or cash advances at no additional cost. The company is also doubling the window in which merchants can respond to a customer dispute and waiving fees for instant withdraws from business accounts.
"We’re basically trying to give small businesses the flexibility to deal with the issues they have right now,” Schulman said. “We’re one of the largest providers of working capital to small businesses, and we’re going to continue to provide that where we can.”
Schulman told CNBC that the company obviously needs to take care its shareholders, "but I think the way we do that best is by taking care of our employees, taking care of our customers and stepping up and doing the right thing."
“That’s, I think, at least how we build businesses that are enduring and an economy that can be strong," he said. "And a strong economy is helpful for everybody.”