PayPal makes Venmo a standalone business unit as potential buyers circle
CNBC • • business
Key Points:
- PayPal CEO Enrique Lores is reorganizing the company to make Venmo a standalone segment, facilitating better tracking of its performance and potential sale opportunities.
- The company plans to recruit a digital banking executive to lead the new Venmo unit, while other segments will include a PayPal-branded merchant and consumer business and a payment services unit covering Braintree and crypto operations.
- The restructuring aims to boost growth amid increasing competition from Apple, Google, and Stripe, following a stock decline and leadership changes after Lores replaced former CEO Alex Chriss.
- Two key executives, Diego Scotti and Michelle Gill, are departing as part of the reorganization, and PayPal is also creating a new AI transformation group led by Anshu Bhardwaj.
- PayPal is facing potential layoffs and will report its first-quarter results next week, with the restructuring seen as a strategic move to revitalize the company's market position.
