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PayPal layoffs hit Israel as payment giant restructures global operations

From Jerusalem Post · () English

Summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources New plan
  • PayPal plans to lay off 70 employees in Israel as part of a global restructuring led by CEO Enrique Lores.
  • The cuts will affect the Tel Aviv development center, which works on artificial intelligence systems for fraud detection, money-laundering prevention and transaction analysis.
  • The wider plan could eliminate more than 4,500 jobs worldwide, with PayPal targeting about $1.5 billion in savings over several years.

PayPal is laying off 70 employees in Israel, including workers at its Tel Aviv development center, as the payment giant pushes ahead with a sweeping global restructuring.

The Israeli cuts affect a local workforce of about 300. The Tel Aviv center develops artificial intelligence systems that analyze transactions in real time, detect fraud, prevent money laundering, and monitor the user experience across PayPal’s applications.

The restructuring, announced in May by new CEO Enrique Lores, includes changes at management level and a stronger focus on integrating artificial intelligence. Data scientists, software engineers and product developers are among those expected to lose their jobs.

designed to simplify our global operations and put the company on a path to long-term growth.

· PayPalThe company described the purpose of its global restructuring.

Bloomberg reported when the plan was announced that PayPal could cut 20% of its workforce, or more than 4,500 employees, while saving around $1.5 billion over the next several years. Other locations affected include Ireland, with 164 layoffs, India, with 200, and PayPal’s headquarters in San Jose, California, with 251.

PayPal said the cuts form part of previously announced changes “designed to simplify our global operations and put the company on a path to long-term growth.” The company added: “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.”

In April, PayPal said it would divide its business into three areas: product payments, consumer financial services through Venmo, and cryptocurrency payments. The company is also reported to be closing its decade-old venture team, which invested in more than 80 companies through three funds totaling over $850 million. PayPal has acquired several Israeli companies and recently bought Tel Aviv commerce technology company Cymbio for an estimated hundreds of millions of dollars.

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.

· PayPalThe company addressed the effect of the layoffs on employees.
About this summary

Originally published by Jerusalem Post. Summarized and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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