PayPal says 220 India employees affected in latest restructuring

PayPal has said approximately 220 employees in India were affected by workforce reductions on August 31, representing about 4% of its India employee headcount, disputing reports of substantially higher job cuts in the country.

In response to questions from The Hindu, the U.S.-based digital payments company said the reductions were part of its previously announced multi-year transformation programme aimed at simplifying its global operations, strengthening execution and positioning the company for long-term growth.

PayPal said the figure of 220 referred to the headcount reductions made in India on August 31. The company did not provide further details on the functions or locations affected.

The company also disputed media reports that nearly a quarter of its approximately 6,700-strong India workforce was being impacted. “Several media reports have been citing a factually inaccurate number,” a PayPal spokesperson said.

PayPal did not, however, answer questions on whether its latest restructuring has affected personnel working on PayPal projects through third-party service providers.

A former employee, who spoke to The Hindu on condition of anonymity, said they were recently asked to leave after working in Chennai on a PayPal project through a third-party service provider.

The person said that no severance package was provided to them, as the package was applicable only to PayPal’s direct employees.

The person said they had been hired by the vendor specifically to work on a PayPal project and had been given a six-month extension after completing a year. They were subsequently asked to leave, with minimal communication and without seeking consent, the person said.

The entire team of six, comprising both contract and direct employees, was subsequently retrenched, the person said. The team was handling a specific function related to the development of internal tools.

Asked whether the third-party vendor was offering alternative employment opportunities, the person said the company had told them it would inform them if there was a further requirement.

When asked PayPal how many personnel from third-party vendors currently work on PayPal projects in India and how many had been affected by the latest restructuring. It was also asked whether contract workers were included in the 220 figure, whether PayPal’s transformation programme involved reducing its outsourced workforce, and whether PayPal or the vendors were responsible for terminating contractors’ assignments.

The company declined to provide further details.

PayPal was also asked about reports from contract personnel that they did not receive benefits or severance comparable with those available to direct PayPal employees, and what severance, notice period, or transition support was available to contractors whose assignments were terminated. The company did not respond to those questions.

PayPal’s India careers page says its Chennai and Bengaluru technology and operations centres employ specialists across product, technology, analytics and operations, while its wider India operations also include customer service and risk functions.

The latest cuts come after PayPal announced a broader multi-year transformation earlier this year. In its statement, the company said, “Decisions like these are never easy. We recognise the impact they have on our employees and are committed to supporting them through this transition.”