U.S. payment company PayPal will cut 70 employees from its local workforce of 300 people in Israel. The cuts will affect the development center in Tel Aviv, the Jerusalem Post reports.
Development center in Tel Aviv
PayPal’s Tel Aviv unit develops artificial intelligence systems for real-time transaction analysis, fraud detection and money laundering prevention. The center also tracks users’ interaction with the company’s service and mobile applications.
According to the publication, the layoffs will affect data analysts, software engineers and product developers. This is part of a restructuring announced in May by PayPal’s new CEO, Enrique Lores.
More current news is available on the UA.News Telegram channel Telegram.
Global change plan
The efficiency improvement plan предусматривает structural changes and significant staff reductions, including in management positions, as part of the company’s transition to artificial intelligence integration. PayPal said the changes are intended to simplify its global operations and put the company on a path toward long-term growth.
When the restructuring was announced, Bloomberg reported that the plan предусматривает cutting 20% of the workforce — more than 4,500 employees — and saving about $1.5 billion over the next several years. The plan also covers Ireland, where 164 employees will be cut, India — 200 employees, as well as PayPal’s headquarters in San Jose, U.S., where 251 employees will be cut.
In April, PayPal said it would divide its operations into three areas: payment products, consumer financial services through Venmo, and cryptocurrency payments. Financial News also wrote about the company’s intention to close its venture unit, which over ten years supported more than 80 companies through three funds totaling more than $850 million.
Download our app
