On January 22, 2025, PayPal’s CEO Enrique Lores announced a reorganization that will separate the popular mobile payment app Venmo into its own division. This move aims to enhance tracking and potentially set Venmo up for a sale. PayPal is also considering hiring a digital banking executive to lead this new division. The company will maintain two additional divisions: the PayPal-branded business and a Payment Services division, which includes Braintree and cryptocurrency operations.
Lores, who became CEO after a decline in PayPal’s stock, aims to reshape the corporate structure to spur growth. This restructuring coincides with plans to reduce the workforce by 15%, an initiative halted by the prior CEO’s departure. Venmo, which boasts around 100 million users, is seen as PayPal’s most valuable asset and could attract interest from acquirers, including Stripe.
The changes have resulted in the departure of key executives, and PayPal plans to introduce an artificial intelligence transformation group led by former engineer Anshu Bhardwaj. PayPal is set to report its first-quarter results soon, following a stock price increase.
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