PayPal hits senior managers, directors and engineers in new Bay Area layoffs
PayPal is laying off 251 people at its San Jose headquarters as the company conducts massive cuts across its entire global workforce.
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The Bay Area layoffs include a wide range of roles but are especially targeting engineers and senior managers, with nearly 50 directors and more than 40 senior managers included, according to a WARN filing with the state on Aug. 31. The cuts also include over 100 engineering-related roles, with more than 50 senior software engineers.
The San Jose job cuts will take effect on Oct. 30, according to the filing.
PayPal is planning on laying off around 20% of its global workforce in the coming years, or around 4,760 jobs of their total 23,800-person staff, in order to save $1.5 billion in expenses, Bloomberg reported in May. According to the Wall Street Journal, CEO Enrique Lores told investors in May that he wants to invest more in “AI adoption and automation” while also cutting “duplication and layers from our organizational structure,” which usually refers to cutting middle management roles.
A company spokesperson who declined to be named confirmed the San Jose cuts are part of these broader layoffs.
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PayPal’s latest layoffs are targeting senior employees, including directors and managers. The notice does not list salaries for cut positions, but previous PayPal job postings for senior directors have listed pay ranges over $300,000 a year.
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Layoffs have been reported across PayPal’s global offices, with job cuts in Israel and a new round of cuts in India announced this week. PayPal made over $1.1 billion in profit in its quarter ending in June 30, according to the latest Securities and Exchange Commission filings from the company.
Tech companies broadly pursue a strategy of laying off employees while simultaneously spending more money on artificial intelligence agents. Layoffs are rarely caused by one sole reason, yet the job cuts have raised concerns that executives are hoping the advanced computer programs can replace human workers. That’s led many people, including college graduates, to abandon careers that seem likely to be replaced by AI software, including engineering and statistical analysis.
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