PayPal Reorganizes Into 3 Divisions, Leans on AI as Branded Checkout Growth Slows to 2%
Updated
Updated · The Associated Press · May 26
PayPal Reorganizes Into 3 Divisions, Leans on AI as Branded Checkout Growth Slows to 2%
1 articles · Updated · The Associated Press · May 26
Enrique Lores, installed as PayPal CEO in February, unveiled a cost-cutting overhaul that splits the company into three divisions and puts more emphasis on artificial intelligence.
The shake-up follows a sharp slowdown in PayPal’s core branded checkout business, which grew just 2% in the first quarter and triggered an almost 8% share drop.
Competition has intensified across payments: Apple Pay has overtaken PayPal in checkout, while Shopify, Klarna, Affirm, Cash App and Zelle have chipped away at its core franchise.
PayPal’s stock is down nearly 40% over 12 months and about 80% over five years, reflecting investor concern over growth more than profitability after the company warned 2026 profit would fall.
Lores told shareholders he would provide a broader turnaround update in a few months, as analysts debate whether assets such as Venmo or Braintree could eventually be spun off.