PayPal is set to reduce its global workforce by approximately 20% over the next two to three years, affecting around 4,760 employees. This significant cut is part of a broader restructuring initiative led by new CEO Enrique Lores, aimed at streamlining operations, achieving substantial cost savings, and accelerating the integration of artificial intelligence across the business.
What happened
PayPal announced plans to eliminate about 20% of its workforce over the next two to three years. This decision aligns with a new turnaround strategy under CEO Enrique Lores, who took the helm in March. The initiative seeks to remove redundant structures, simplify the organization, and enhance technological investments, particularly in AI. The company also recently reorganized into three business units: Checkout Solutions and PayPal; Consumer Financial Services and Venmo; and Payment Services and Crypto.
How many employees affected
Based on PayPal's reported 23,800 employees at the close of 2025, the planned 20% reduction translates to approximately 4,760 roles being eliminated. The company has not specified which business areas or departments will be affected by these changes.
Why layoffs happened
The layoffs are a core component of CEO Enrique Lores' strategy to achieve a minimum of $1.5 billion in gross run-rate savings over the next two to three years. Lores stated that PayPal needs to focus, recommit to fundamentals, and address insufficient investment in its technology infrastructure. A key part of the strategy involves accelerating AI adoption and automation across operations, including software development, customer service, support, and risk management, to improve efficiency and reduce costs.
Company background
PayPal is a prominent digital payment platform offering various financial services, including online checkout experiences, buy now pay later options, and payment processing. It also operates Venmo and has a presence in cryptocurrency services. The company aims to re-establish itself as a technology-first entity in the financial services sector.
Industry impact
The fintech industry, mirroring broader tech trends, has seen increased layoffs alongside significant investments in AI. PayPal's move reflects a growing industry concern that AI adoption, while driving operational efficiencies, may lead to workforce reductions. This trend underscores a shift towards technology-driven solutions and streamlined operations across the financial technology landscape.
What's next
PayPal expects to deliver at least $1.5 billion in gross run-rate savings through its restructuring and AI integration efforts. The company plans renewed investments in its core checkout experience, buy now pay later offerings, Venmo, financial services, and payment processing. It will also modernize its technology platform and transition towards a cloud-native architecture. For the second quarter, PayPal anticipates adjusted earnings per share to be about 9% lower than last year, while maintaining its full-year adjusted earnings per share outlook to be slightly down or up compared to 2025.