Home › Guides › PayPal Layoffs 2026
⚠️ Active Layoffs — Updated July 2026
PayPal Layoffs 2026: Severance, WARN Act & What to Do Now
PayPal cut 2,500 employees in early 2024 and continued restructuring through 2025 and into 2026 as the company refocused on its core payments business. Here is what affected employees need to know.
✓ Based on WARN Act filings, reported severance terms, and 2026 employment attorney guidance — Updated July 2026
Jobs Cut
9,000+
Jan 2024 – Apr 2026
Severance
2 wks/yr
Min 4 weeks
COBRA Coverage
90 days paid
Health insurance help
OWBPA Applies
If 40+
21 days to review
⚠️ WARN Act Status — PayPal
PayPal filed WARN Act notices for its California and New York offices. Employees in San Jose and New York City were among those receiving WARN-covered notices.
🛡️ If You Are 40 or Older — Federal Law Gives You Time
The Older Workers Benefit Protection Act gives workers 40 and older at least 21 days to review any severance agreement, and 45 days if this was a group layoff. You also have 7 days to revoke after signing. PayPal cannot legally require you to sign immediately.
Calculate Your Financial Runway After a PayPal Layoff
Enter your severance weeks, savings, location, and expenses. Get your month-by-month survival timeline — and see exactly what to do next.
Open PayPal Layoff Calculator →
PayPal 2026 Severance Package: Reported Terms
PayPal's reported severance is 2 weeks per year of service with a floor of 4 weeks and a reported cap around 20 weeks. The company has historically paid 90 days of COBRA premiums for corporate employees.
| Component | Corporate / Salaried | Hourly / Ops |
|---|
| Base severance formula | 2 weeks per year of service | N/A |
| Minimum severance | 4 weeks | N/A |
| Maximum reported | ~20 weeks | N/A |
| COBRA coverage | 90 days premiums paid | N/A |
| RSU treatment | Unvested RSUs forfeited | N/A |
| PTO payout | Accrued PTO paid out | N/A |
RSU and equity situation
PayPal uses a 4-year vest with annual tranches. If you are within 30 days of a vest date, that is a specific dollar amount you can ask to be included or accelerated in your separation agreement.
Your Timeline After a PayPal Layoff
1
Day 1: Do not rush the signaturePayPal typically gives a 7-day window but you can assert your OWBPA rights for 21 days if you are 40+.
2
Day 1: File for unemployment immediatelyIn California, file at edd.ca.gov. No waiting period — benefits begin from day one of unemployment.
3
Within 90 days: COBRA decisionPayPal covers 90 days. After that, ACA marketplace plans may be significantly cheaper.
4
Before signing: Check vest scheduleLocate your equity grant documents and map every vest date against your last day of employment.
5
Before signing: Non-solicitation clausePayPal's agreements typically include a non-solicitation of employees provision — understand the scope.
Other Company Layoff Guides
Severance terms based on reported employee outcomes, WARN Act public filings, and employment attorney guidance as of July 2026. Individual packages vary significantly. This is for informational purposes only and is not legal or financial advice. If you have a specific legal question, consult a licensed employment attorney in your state.