PayPal Holdings, Inc. 10-Q filed Oct 27, 2026

Modified · Strategic reorganization

In April 2026, the Company announced a strategic reorganization of its business and executive leadership team intended to accelerate execution of its long-term growth priorities, simplify its operating structure, streamline decision-making, and drive innovation. This strategic reorganization and business simplification program, which will focus on realigning our operating structure and accelerating the adoption of artificial intelligence and automation across the companyCompany, is expected to deliver at least $1.5 billion in gross annualized run-rate savings over the next two to three years. The Company intends to reinvest a significant portion of these savings back into its highest-priority growth initiatives. As part of this program, certain actions have been identified that are expected to be completed by during the end third quarter of this year and which have the potential2026 management implemented a global workforce reduction to generate approximately $400 million of run-rate gross savings, with a portion to be realized in simplify our operations by removing organizational layers across the fourth quarter. The Company is still finalizing plans but this first phase of actions could result and increasing spans of control (the “3Q 2026 Plan”) resulting in a transformation related charge within the range restructuring charges of approximately $120152 million to $140 million during the second half of in the three months ended September 30, 2026. The Company expects to provide additional details regarding We expect the structure of the program and anticipated phasing of3Q 2026 Plan to generate annualized employee-related cost savings realization in future periods as the program is developed and implementedof approximately $340 million.