PayPal plans 20% job cuts, Enrique Lores cites $1.5B savings
PayPal is reportedly planning to cut about 20% of its workforce, or more than 4,500 jobs, as part of a major restructuring plan.
The company says the restructuring and AI changes could bring at least $1.5 billion in cost savings over the next two to three years.
CEO Enrique Lores shared the news during the company's Q1 earnings call.
PayPal reorganizes, bets on AI
Alongside the layoffs, PayPal is reorganizing into three main areas: checkout solutions and PayPal, consumer financial services (think Venmo), and payment services (including crypto).
Even though revenue grew to $8.4 billion last quarter, PayPal's stock has dropped over 80% since its peak in 2021, pushing it to rethink things.
It's also going all-in on AI, modernizing its platform and forming a new team focused on using AI to improve customer service, risk management, and support operations.