PayPal layoffs hit Israel as payment giant restructures global operations
The cut will hit the Tel Aviv development center, which develops artificial intelligence systems to analyze transactions in real time, detect fraud, and prevent money laundering.
PayPal, the American payment services company, is reducing its workforce in Israel by 70 employees as part of a global restructuring plan initiated by CEO Enrique Lores in May. The layoffs will affect the Tel Aviv development center, which focuses on creating AI systems for real-time transaction analysis, fraud detection, money laundering prevention, and user experience monitoring.
The restructuring plan, which was disclosed in Bloomberg, aims to cut the company's workforce by 20%, or over 4,500 employees, and result in a $1.5 billion savings over the following years. Other impacted locations include Ireland, India, and the company's headquarters in San Jose, USA. The cuts are part of the previously announced changes designed to streamline PayPal's global operations and pave the way for long-term growth.
In April, PayPal announced the division of its business operations into three segments: product payments, consumer financial services through Venmo, and cryptocurrency payments. The company also plans to disband its 10-year-old venture team, which has supported over 80 companies through three funds totaling more than $850 million. PayPal has made several investments in Israeli companies, most recently acquiring Cymbio, an AI-driven commerce tech firm, for an estimated sum of hundreds of millions of dollars.
Written by urgent.news from Jerusalem Post Tech & Start-Ups's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
