PayPal cuts 220 jobs in India as part of multi-year cost-saving plan

PayPal has cut around 220 jobs in India as part of a broader, multi-year transformation aimed at simplifying operations and reducing costs. The payments company, led by CEO Enrique Lores, is targeting $400 million in savings this year and at least $1.5 billion over two to three years amid intensifying competition.

PayPal has cut roughly 220 jobs in India as part of the payments firm's broader, multi-year turnaround plan laid out earlier this year, a person familiar with the matter told Reuters on Thursday.

"The recent 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," a PayPal spokesperson said in an emailed statement.

Also read: Volkswagen to cut 100,000 jobs by end of decade in biggest restructuring in global auto industry

The firm has outlined extensive cost-saving measures this year under newly appointed CEO, Enrique Lores, as it seeks to sharpen its competitive position in the crowded payments market.

PayPal has set a target of achieving $400 million in cost savings by year-end and at least $1.5 billion over the next two to three years.

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Among the initiatives are plans to reduce organizational layers, improve productivity and integrate AI and automation across the business.

It joins a growing list of U.S. companies that have announced job cuts this year.

The rise of fintech rivals and big-tech players such as Apple and Google in payments has chipped away at PayPal's market share in recent years, weighing on its stock. The company's shares are down roughly 82% from its 2021 record high.

In its latest earnings report, PayPal raised its full-year profit forecast after quarterly results topped Wall Street expectations.

Also read: PayPal in talks with Stripe and private equity firm over sale: report

The turnaround initiatives come against a backdrop of takeover speculation around the company.

Reuters reported in July, citing sources, that a consortium including payments company Stripe and private equity firm Advent had made a $53 billion offer to buy PayPal.

The suitors are no longer pursuing the deal, according to media reports in late August.