PayPal Plans Job Cuts Amid Turnaround Strategy

PayPal is planning to cut costs and jobs as CEO Enrique Lores looks to ensure the company’s position as a competitor in the financial services market.

The payments company is looking to save at least US$1.5bn in savings over the next two to three years, according to a company statement and has also reported first quarter earnings per share of US$1.43, exceeding the average analyst estimate of US$1.27.

Enrique took over as the company’s CEO in March and since his appointment has been strategising ways to improve the company’s finances, which have struggled in recent years.

On 29 April, PayPal said it restructured its business outlets and appointed several executives into new leadership positions, including Frank Keller as President of Checkout Solutions, Alexis Sowa as interim Lead of Consumer Financial Services and Jeff Pomeroy as interim Lead of Payment Services.

Simplifying company operations

Enrique says during his first two months as CEO, he learned of the “opportunity to simplify operations” and saw the “potential to reduce cost structure”.

In addition, he added that the company would reinvest in modernising its technology.

“We are taking deliberate steps to sharpen our strategy, simplify our organisation, and improve both our growth trajectory and cost structure by focusing our investments where we believe they will have the greatest impact,” Enrique said in the company statement. 

“I am confident in our ability to put the company on a more durable path to long-term growth.”

Similarly to PayPal, financial service competitors have also been enacting company-wide layoffs.

Coinbase Global said on 5 May it plans to reduce its workforce by about 14% (approximately 700 employees) and in March, Block announced it planned to cut 4,000 workers, saying AI development has led it to assess “what it means to build and run a company”.

Many companies in the tech and finance industry have cited AI as a reason for laying off positions, with larger companies like Meta and Amazon looking to use the technology to maximise profits and and reduce workforce costs.

An innovator of financial technology

During Enrique’s presentation, PayPal stated it expects adjusted earnings per share to post a “low-single-digit decline to slightly positive” percentage change from the previous year’s US$5.31.

For the first three months of 2026, transaction margin dollars rose 3% to US$3.81bn, beating the US$3.67bn consensus of Wall Street analyst estimates.

The company has struggled despite its tenure as an innovative, financial technology company. It became an early proponent of digital payments in the 00s, however it has since struggled amid competition in the market from companies like Stripe, Apple Pay and Klarna Group.

Former PayPal CEO Alex Chriss tried to prioritise and build on past innovations during his time as head executive, although during the company’s Q4 results in 2025 and shortly before Alex’s departure, CFO Jamie Miller said the execution had “not been what it needs to be.”

The company briefly saw new success with its consumer-facing business Venmo, which saw total payment rise 14%, however PayPal’s online checkout volume has lagged, only increasing 2% in the same period.

Discussing the company restructuring and next stage of growth, Enrique says: “To accelerate growth and unlock our full potential, we need to recommit to our fundamentals.

“By aligning our structure with our strategy in this simplified approach, we will be better equipped to drive sustainable growth and value creation for PayPal, our customers, and our shareholders.”