PARTIV Note17—RestructuringandOtherCharges PayPalHoldings,Inc. NotestoConsolidatedFinancialStatements—(Continued) Note17—RestructuringandOtherCharges During the first quarter of 2022, management initiated a strategic reduction of the existing global workforce intended to streamline and optimize our global operations to enhance operating efficiency. This effort focused on reducing redundant operations and simplifying our organizational structure. The associated restructuring charges in 2022 were $121 million. We primarily incurred employee severance and benefits costs, as well as associated consulting costs under the 2022 strategic reduction.Thestrategicactionsassociatedwiththisplanweresubstantiallycompletedbythefourthquarterof2022. ThefollowingtablesummarizestherestructuringreserveactivityduringtheyearendedDecember31,2022: EmployeeSeveranceand BenefitsandOther AssociatedCosts (In millions) Accruedliability as of January 1, 2022 $5 Charges 121 Payments (102) ACCRUEDLIABILITYASOFDECEMBER31,2022 $24 During the first quarter of 2020, management approved a strategic reduction of the existing global workforce as part of a multiphase process to reorganize our workforce concurrently with the redesign of our operating structure, which spanned multiple quarters. The associated restructuring charges in 2021 and 2020 were $27 million, and $109 million, respectively. We primarily incurred employee severance and benefits costs, as well as associated consulting costs under the 2020 strategic reduction, which was substantiallycompletedin 2021. Additionally, we are continuing to review our real estate and facility capacity requirements due to our new and evolving work models. We incurred asset impairment charges of $81 million, $26 million, and $30 million in 2022, 2021, and 2020, respectively, due to exiting of certain leased properties which resulted in a reduction of ROU lease assets and related leaseholdimprovements.See“Note6—Leases”foradditionalinformation. Note18—SubsequentEvents In January 2023, management initiated a global workforce reduction intended to focus resources on core strategic priorities, and improve our cost structure and operating efficiency. We estimate that this reduction will impact approximately 7% of our employees and will result in approximately $100 million of restructuring charges, primarily related to employee severance and benefits costs. The actions associated with this plan are expected to be substantially completedbythefirstquarterof2023. 116 •2022AnnualReport