PayPal Holdings, Inc. is reportedly preparing major workforce reductions as the company moves forward with a broad turnaround strategy under newly appointed CEO Enrique Lores.
According to reports, PayPal plans to reduce nearly 20% of its workforce over the next 2 to 3 years as part of efforts to simplify operations, lower costs, and strengthen its AI and technology capabilities. With approximately 23,800 employees at the end of 2025, the planned restructuring could affect more than 4,500 positions.
The company expects the restructuring to generate at least $1.5 billion in savings, which will be redirected toward growth initiatives, technology upgrades, and artificial intelligence investments.
Enrique Lores, who became CEO in March 2026, has started reshaping the fintech company amid increasing competition from technology and payment firms including Klarna and Stripe, Inc..
During recent investor discussions, Lores emphasized the need to simplify the company’s structure and reduce operational duplication. PayPal is also increasing its focus on AI-powered capabilities and broader technology modernization efforts.
As part of the restructuring, PayPal recently reorganized its operations into 3 business divisions, including a standalone unit focused on Venmo. The company believes the new structure will improve operational efficiency and support long-term growth opportunities.
Despite delivering Q1 results that surpassed analyst expectations, PayPal’s shares declined following its strategic announcements and cautious market outlook. The company reported Q1 revenue of $8.35 billion and adjusted earnings per share of $1.34, both above Wall Street forecasts.
The development has also sparked wider discussions across social platforms, with many linking the planned job cuts to the growing influence of AI and automation across the fintech and technology sectors.
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