PayPal has laid off about 70 employees in Israel, nearly a quarter of its local workforce, in one of the largest rounds of cuts to hit the company’s Israeli operation in recent years.
The payments giant employs roughly 300 people in Israel, primarily at its Tel Aviv development center.
PayPal slashes Israel workforce by about 25% as AI-driven overhaul expands
(Photo: AP Photo/Jeff Chiu, File)
The local layoffs are part of a broader efficiency drive underway across PayPal’s global operations. Reports in May said the company was planning to reduce its workforce by about 20% over the coming years.
Based on PayPal’s headcount of roughly 23,800 employees at the end of 2025, that would amount to about 4,760 positions worldwide.
The restructuring is being led by CEO Enrique Lores, who took over in March, and is intended to generate at least $1.5 billion in annual savings, according to previous reports.
As part of the plan, PayPal is expected to reduce management layers, consolidate teams and accelerate the use of artificial intelligence across its operations.
In recent days, the cuts have begun to spread to additional PayPal locations.
Employees from various departments in the United States have said on LinkedIn that their positions were eliminated as part of a “global reorganization,” according to reports in U.S. media.
The company has also announced plans to cut 164 jobs in Ireland, representing about 12% of its workforce there.
‘Not an easy decision’
PayPal’s Israeli development center is considered one of the company’s key technology hubs, particularly in cybersecurity, risk management and fraud prevention.
Local teams develop AI-based systems that analyze transactions in real time, help detect fraudulent activity and support efforts to combat money laundering.
PayPal built much of its Israeli presence through a series of acquisitions.
One of the most significant was Fraud Sciences, which the company bought in 2008 for about $169 million.
It later acquired Israeli cybersecurity companies CyActive and Curv.
Earlier this year, PayPal further expanded its presence in Israel by acquiring e-commerce company Cymbio. The purchase price was not disclosed.
In a statement, PayPal said the workforce changes were part of a previously announced multiyear transformation program.
“The changes to our workforce are part of the multiyear transformation process we previously announced, designed to simplify our global operations and put the company on a path to long-term growth,” PayPal said.
“Decisions of this kind are not easy, and we are fully aware of their impact on our employees. We are committed to standing by them and providing them with full support during this period of change.”