PayPal is set to lay off 251 employees at its San Jose headquarters as part of a larger initiative to reduce its global workforce by 20%.
PayPal is preparing to implement significant job cuts at its San Jose headquarters, with 251 employees facing layoffs as the company continues its broader effort to reduce costs. This latest round of layoffs will impact senior employees, managers, and engineers, marking a substantial shift in the company’s workforce strategy.
According to a Worker Adjustment and Retraining Notification (WARN) filing submitted to California’s Employment Development Department, the affected employees are expected to lose their jobs on October 30, 2026. The WARN filing indicates that the layoffs will encompass a variety of roles, including more than 100 engineering positions, over 50 senior software engineers, nearly 50 directors, and more than 40 senior managers.
This move is part of PayPal’s larger restructuring plan, which aims to eliminate approximately 20% of its global workforce. Bloomberg has reported that this initiative could potentially affect around 4,760 employees out of a total workforce of about 23,800 worldwide.
PayPal has characterized the restructuring as a necessary step to enhance efficiency and redirect resources toward areas deemed critical for future growth, particularly in artificial intelligence. The company anticipates that these cost-cutting measures will yield approximately $1.5 billion in savings over the next two to three years, with around $400 million expected by the end of the first year.
The pressure for these cuts comes as PayPal navigates an increasingly competitive payments market. Traditional technology giants like Apple and Google have expanded their foothold in digital payments, while emerging companies such as Stripe and Klarna have solidified their positions within the industry.
The WARN filing also highlights the seniority of some of the employees affected by the layoffs. Reports from SFGate indicate that senior director positions at PayPal could command annual salaries exceeding $300,000, underscoring the significance of the cuts.
The layoffs in San Jose follow previous job reductions and restructuring efforts at PayPal as CEO Enrique Lores seeks to reshape the company. Lores, who took over as president and CEO in March, has been tasked with simplifying the organization and enhancing its financial performance.
The urgency of the restructuring plans became more pronounced after the company’s disappointing first-quarter results, which led to increased pressure to improve growth while managing expenses and competing effectively in the rapidly evolving payments landscape.
Under federal law, companies covered by the WARN Act are generally required to provide advance notice of certain mass layoffs and plant closures. California’s Employment Development Department maintains WARN filings that detail the affected workers and the timing of job reductions.
For the employees impacted in San Jose, the WARN filing specifies the date for the latest wave of layoffs. However, for PayPal, these job cuts are part of a broader strategy to reduce its workforce, lower expenses, and reposition the company for its next phase of growth, according to Bloomberg.