Recent layoffs at a major tech company in the Bay Area have resulted in significant job losses, with PayPal announcing a 20% reduction in its workforce.
The payment service provider plans to eliminate 251 positions at its headquarters in San Jose, as documented in a notice to California’s Employment Development Department.
This round of layoffs will affect many senior directors, managers, and engineers. According to the filing, it includes 42 senior software engineers, 28 senior engineering managers, and a variety of other leadership roles and middle management positions.
PayPal, which has a global workforce of about 23,800 employees, is aiming to cut approximately one-fifth of its staff—around 4,760 positions—as part of a strategy to reduce costs and promote the use of artificial intelligence, as reported by the Wall Street Journal.
In the Bay Area, senior directors at PayPal typically earn salaries exceeding $300,000, making these layoffs particularly impactful for higher-paid workers in the region.
Just this week, Uber also announced a plan to reduce its workforce by 10%, with a significant portion of those cuts affecting Bay Area staff. Additionally, Amazon revealed 150 job cuts in Northern California.
A spokesperson for PayPal commented, “The proposed staffing changes are part of our previously announced multi-year transformation to simplify our global operations, strengthen execution, and position the company for long-term growth.”
The statement continued, “Decisions like these are never easy. We understand the impact on our employees and are dedicated to supporting them during this transition.”
Founded in 1998 as Cofinity by Peter Thiel, Max Levchin, and Luke Nosek, PayPal has grown to be one of the largest payment platforms globally, even acquiring Venmo in 2013.
The layoffs at PayPal are set to take effect on October 30.
