PayPal plans to cut ~4,760 jobs (20% of workforce) over 2-3 years under new CEO
Tags AI · Enterprise
PayPal is planning to cut approximately 4,760 employees (nearly 20% of its global workforce) over the next two to three years as part of a major restructuring under new CEO Enrique Lores, who replaced Alex Chriss in early 2026. The restructuring, called 'Project Leap,' aims to simplify operations, reduce expenses, and invest in AI-driven technologies. PayPal stock is down 22% year-to-date as of May 2026. Venmo payments surged 34% YoY and BNPL volume rose 23%, but increased marketing and AI spending impacted the bottom line. The layoffs are linked to AI-related operational changes alongside Meta, Cloudflare, and Coinbase in an industry-wide trend.
Technical significance
PayPal's 2-3 year phased layoff approach contrasts with the immediate cuts at Meta and Cloudflare, suggesting a more gradual AI transition. The 22% stock decline reflects investor concerns about competitive positioning in payments, while the 34% Venmo growth shows the consumer business is not the problem. The restructuring under a new CEO (Lores) follows the pattern of leadership changes preceding major AI-driven reorganizations.