PayPal Lays Off Nearly a Quarter of Israeli Workforce
Translated & summarized from Globes by baba
Payment technology company PayPal has laid off approximately 70 employees, or nearly 25%, of its Israeli workforce as part of a global restructuring and efficiency initiative aimed at saving $1.5 billion annually. The layoffs are occurring worldwide and are intended to streamline operations and integrate AI.
The story in 5 lines · by baba
- PayPal laid off about 70 employees in Israel.
- The layoffs represent nearly 25% of PayPal's Israeli staff.
- This is part of a global efficiency drive by PayPal.
- The company aims to save $1.5 billion annually.
- AI integration and organizational streamlining are key components.
Payment giant PayPal has dismissed approximately 70 employees from its Israeli operations, representing nearly a quarter of its local workforce. This move is part of a broader global efficiency drive by the company.
In May, PayPal announced plans to reduce its global workforce by about 20% over the coming years, which translates to roughly 4,760 jobs based on an estimated 23,800 employees by the end of 2025. The initiative, led by CEO Enrique Lores, aims to achieve annual savings of at least $1.5 billion by streamlining organizational layers, consolidating teams, and integrating artificial intelligence tools into workflows.
The recent layoffs are a global phenomenon, with employees in the U.S. also reporting job losses due to a "worldwide reorganization." Additionally, PayPal intends to lay off 164 employees in Ireland, constituting about 12% of its staff there.
PayPal's Israeli development center is considered a significant technological hub, particularly in areas of cybersecurity, risk management, and fraud prevention. The local teams develop AI-based systems for real-time transaction analysis, fraud detection, and anti-money laundering efforts. The company's presence in Israel has grown through acquisitions, including Fraud Sciences in 2008, and later cyber firms CyActive and Curv, as well as e-commerce company Cymbio earlier this year.
A PayPal spokesperson stated, "The changes in our workforce are part of a multi-year transformation process we previously announced, designed to simplify our global operations and position the company for long-term growth. Decisions like these are not easy, and we are deeply aware of their impact on our employees. We are committed to supporting them and providing them with full assistance during this period of change."
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