PayPal Plans Job Cuts as Fintech’s New CEO Pursues Turnaround Strategy

PayPal Holdings Inc. plans to cut approximately 20% of its workforce over the next two to three years as part of new CEO Enrique Lores’ turnaround strategy for the struggling payments company. With around 23,800 employees at the end of 2025, this reduction could eliminate more than 4,500 jobs.

Cost Reduction and Earnings

The workforce reduction is part of PayPal’s broader plan to realize at least $1.5 billion in savings over the next two to three years. Despite the challenging situation, PayPal reported first-quarter 2026 adjusted earnings per share of $1.34, beating the average analyst estimate of $1.27, with revenue of $8.35 billion representing a 7.2% year-over-year increase. In his first two months as CEO, Lores identified significant “opportunity to simplify operations” and “potential to reduce cost structure,” with plans to reinvest savings into modernizing technology.

Leadership Transition

Enrique Lores took over as PayPal CEO in March 2026 after replacing Alex Chriss, who stepped down following weaker-than-expected Q4 2025 results. Lores previously served as CEO of HP Inc. for six years (November 2019 to February 2026) and had chaired PayPal’s board since July 2024, giving him deep insight into the company before assuming the CEO role. He brings a reputation for operational discipline from his 35-year tenure at HP, where he rose from engineering intern to CEO.

Strategic Reorganization

In late April 2026, PayPal announced a strategic reorganization into three simplified business units: Checkout Solutions & PayPal, Consumer Financial Services & Venmo, and Payment Services & Crypto. The restructuring aims to accelerate growth by getting “much closer to the consumer, aligning the company around three strong businesses, simplifying how we work, sharpening accountability, and prioritizing operational excellence,” according to Lores. The company is also establishing an AI transformation group to drive automation and efficiency improvements.