PayPal says 220 India employees affected in August 31 workforce reduction

(Correction: PayPal said its August 31 India headcount reduction affected about 220 employees, or 4% of its India workforce, not the roughly 600 previously reported.)

PayPal (NASDAQ:PYPL) has cut around 220 employees in India, or roughly 4% of its local workforce, as the payments company restructures its operations globally to reduce costs.

The cuts have affected employees across technology, engineering, operations, payments and finance, with job losses reported at PayPal’s offices in Chennai, Bengaluru and Hyderabad, according to people familiar with the matter.

PayPal said the India headcount reduction made on August 31 affected ~220 employees, representing 4% of its India employee headcount.

The layoffs began with calls to affected employees on Aug. 31, according to Moneycontrol. One employee told the publication that access to company systems was revoked immediately after the termination call.

Affected staff were offered job-placement assistance and told they would receive one month’s salary as severance, although some employees said they were still waiting for details on their final settlements.

The India cuts are part of a broader restructuring effort at PayPal. Management announced in May that it planned to reduce its global workforce by 20% over the next two to three years, targeting at least $1.5 billion in gross run-rate savings over that period.

PayPal had about 23,800 employees globally at the end of 2025, implying that the broader plan could affect roughly 4,760 positions.

PayPal’s India operations have become an important part of its global technology and payments infrastructure.

The company opened its first development center in Chennai in 2008, while its Bengaluru and Hyderabad operations support areas including machine learning, artificial intelligence, fraud prevention, risk management and data science.

The layoffs come as global technology and fintech companies increasingly focus on cost discipline and AI-led efficiencies. Moneycontrol noted that PayPal’s India cuts follow recent workforce reductions or restructuring plans at other large multinational technology and services operations in the country.

"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," PayPal said in a statement.

Decisions like these are never easy. We recognize the impact they have on our employees and are committed to supporting them through this transition."