US payments giant PayPal set to slash about a quarter of its employees in Israel
PayPal, which employs some 300 people in the country, is poised to cut around 70 employees at its Tel Aviv-based development center amid global layoffs to reduce costs, invest in AI
Add ToI as a Preferred Source on GoogleSharon Wrobel is a tech reporter for The Times of Israel
US payment giant PayPal is laying off dozens of employees in Israel as part of a global round of job cuts to streamline operations and invest in artificial intelligence infrastructure and development across the business.
As part of a global multi-year turnaround plan, the US fintech firm is slated to fire around 70 employees at its Tel Aviv development center, almost a quarter of its 300-person workforce in Israel, according to sources familiar with the matter. Among local employees are data scientists, software engineers, and product developers.
A PayPal spokesperson declined to disclose details about the size of planned layoffs in Israel but confirmed that “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.”
“Decisions like these are never easy,” the PayPal spokesperson said. “We recognize the impact they have on our employees and are committed to supporting them through this transition.”
The job cuts are part of a global restructuring plan announced in May, shortly after incoming PayPal CEO Enrique Lores took office. The payment firm has embarked on a path of investments in AI to modernize its technology platform and simplify its operations. PayPal has plans to remove three organizational layers and reduce its global workforce by about 20 percent, to save $1.5 billion annually and become a faster and more efficient company.
Over the past two decades, PayPal has been ratcheting up its activities in Israel through a series of acquisitions of local startups, led by Fraud Sciences, in 2008, which it bought for about $169 million. Over the years, the fintech firm established a risk and data sciences R&D center in Tel Aviv focused mainly on cybersecurity, risk management and fraud prevention technologies.
Earlier this year, PayPal announced plans to buy Tel Aviv-based startup Cymbio, the developer of an e-commerce platform that helps merchants sell products via multiple digital and automated channels, including AI chatbots.
PayPal’s streamlining move comes as local tech firms from Monday.com, Wix to Amdocs, alongside multinational firms with R&D centers in Israel, have in recent months announced a wave of layoffs to tighten operations, cut costs, and reorganize their staff amid pressure to adapt their businesses to the new automation era.
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