PayPal Cuts 220 Jobs In India As Part Of Global Turnaround Plan

PayPal has laid off close to 220 employees in India as part of a broader, multi-year turnaround plan announced earlier this year, according to Reuters report.

A PayPal spokesperson told Reuters that the recent staffing changes were part of the company's previously announced transformation to simplify global operations, strengthen execution and support long-term growth.

Company Disputes Initial Job Cut Estimate

Early reports had put the number of affected employees at around 600, a figure PayPal disputed. A company spokesperson told Moneycontrol that approximately 220 employees, or about 4% of its India workforce, were impacted by the reduction on August 31. PayPal employs more than 6,000 people in India.

Employees affected by the move said the process began on the morning of August 31 without warning. One employee told Moneycontrol that staff across Indian offices were invited to a call on Monday morning and informed on the spot that they were being let go, with system access revoked immediately after the call ended.

The layoffs come under a set of cost-saving measures introduced this year by newly appointed CEO Enrique Lores as PayPal looks to strengthen its position in a competitive payments market. The company aims to achieve $400 million in savings by the end of the year and at least $1.5 billion over the next two to three years, through steps such as cutting organisational layers and expanding the use of AI and automation.

PayPal is among several US companies that have announced job cuts this year. The firm's market share has come under pressure from fintech rivals and big technology players such as Apple and Google, with its stock down roughly 82% from its 2021 peak. In its most recent earnings report, PayPal raised its full-year profit forecast after quarterly results beat Wall Street estimates.

The restructuring follows takeover speculation around the company. Reuters reported in July that a consortium including Stripe and private equity firm Advent had offered $53 billion to acquire PayPal. Media reports in late August said the suitors were no longer pursuing the deal.