Fintech sector faces mass layoffs amid AI redundancy claims

The global fintech sector is experiencing significant workforce reductions in 2026, with nearly 10,000 jobs cut so far this year. Major companies including PayPal, Block, and Coinbase have implemented substantial headcount reductions. PayPal is reportedly eliminating approximately 20% of its global workforce, while Coinbase has cut 14% of its staff.

In Ireland, PayPal Europe Services Ltd has notified authorities of proposed collective redundancies affecting 164 employees, representing nearly 12% of its Irish workforce. These cuts are expected to take place between October 7 and October 21. PayPal stated these changes are part of a multi-year transformation to simplify global operations and strengthen execution.

While many companies attribute these layoffs to artificial intelligence, analysts from Deutsche Bank have characterized this as ‘AI redundancy washing.’ This term describes the practice of using AI adoption as a justification for workforce reductions that may actually be driven by deteriorating unit economics or a shift toward operational discipline following periods of rapid growth. Research suggests that approximately 60% of US hiring managers emphasize AI's role in layoffs to better align with stakeholder expectations.