PayPal is preparing to cut 251 jobs at its San Jose headquarters, with the latest round of layoffs affecting senior employees, managers and engineers as the company moves ahead with a broader effort to reduce costs.
According to a Worker Adjustment and Retraining Notification (WARN) filing with California’s Employment Development Department, the affected employees are expected to lose their jobs on October 30, 2026. The filing shows that the cuts will affect a wide range of roles, including more than 100 engineering positions, over 50 senior software engineers, nearly 50 directors and more than 40 senior managers.
The layoffs are part of PayPal’s larger restructuring plan, which calls for eliminating about 20% of its global workforce. Bloomberg previously reported that the company’s plan could affect roughly 4,760 employees out of a global workforce of about 23,800.
PayPal has described the restructuring as part of a broader push to make the company more efficient and redirect resources toward areas it sees as important for future growth, including artificial intelligence. The company has said its cost-cutting efforts are expected to generate about $1.5 billion in savings over two to three years, including roughly $400 million by the end of the first year.
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The pressure comes as PayPal faces an increasingly crowded payments market. Traditional technology giants including Apple and Google have expanded their presence in digital payments, while companies such as Stripe and Klarna have continued to strengthen their positions in the industry.
The latest California filing also reflects the seniority of some of the employees affected. According to SFGate, previous PayPal job postings showed that senior director positions at the company could carry annual compensation of more than $300,000.
The San Jose layoffs follow earlier cuts and restructuring efforts at PayPal as CEO Enrique Lores works to reshape the company. Lores took over as PayPal’s president and CEO in March, bringing with him a mandate to simplify the organization and improve its financial performance.
The company’s restructuring plans gained greater attention after its first-quarter results disappointed investors. PayPal has since been under pressure to improve growth while controlling expenses and keeping pace with competitors in the rapidly changing payments industry.
Under federal law, companies covered by the WARN Act generally must provide advance notice of certain mass layoffs and plant closures. California’s EDD maintains WARN filings that provide details about affected workers and the timing of job reductions.
For the employees affected in San Jose, the filing puts a specific date on the latest wave of cuts. For PayPal, however, the layoffs are part of a much larger effort to reduce its workforce, lower expenses and reposition the company for its next phase of growth.