PayPal is preparing a significant internal restructuring that will carve out Venmo as a standalone business segment, according to a report by CNBC.
The move signals a broader effort by new chief executive Enrique Lores to streamline operations and unlock value at the payments company.
The reorganisation comes as PayPal faces intensifying competition in digital payments and seeks to regain investor confidence after a prolonged slump in its share price.
Shares of PayPal were up by over 2.5% on Wednesday at the time of writing.
Venmo to operate as independent segment
Under the proposed changes, Venmo will be separated from PayPal’s core operations and reported as an independent segment.
The shift is expected to provide greater transparency into the app’s performance and could pave the way for a potential sale or strategic partnership in the future, people familiar with the matter said.
PayPal is also looking to appoint a dedicated digital banking executive to lead the Venmo division, underscoring its ambition to scale the platform more aggressively.
The remaining business will be split into two key units: a PayPal-branded segment catering to merchants and consumers, and a payments services arm that includes Braintree and cryptocurrency operations.
New leadership bets on sharper focus
Lores, who took over as CEO in March after leading HP for six years, is betting that a clearer organisational structure will help reinvigorate growth.
PayPal has struggled to keep pace with rivals such as Apple, Google, and Stripe in the rapidly evolving e-commerce payments landscape.
His predecessor, Alex Chriss, was unable to reverse the company’s declining stock performance, which had fallen sharply from pandemic-era highs.
The restructuring also follows reports of takeover interest.
Bloomberg previously reported that potential buyers, including Stripe, had explored acquiring parts or all of PayPal.
Leadership changes and AI push
The overhaul is expected to trigger leadership changes across the organisation.
Diego Scotti, who led the consumer division including Venmo, and Michelle Gill, who oversaw the small business unit, are set to depart.
At the same time, PayPal is creating a new artificial intelligence transformation group to be led by Anshu Bhardwaj, a former Walmart technology executive.
A financial services unit supporting the core businesses will be headed by Scott Young, who previously worked at Goldman Sachs.
Layoff plans remain uncertain
The restructuring comes amid uncertainty over potential job cuts.
Earlier this year, managers had been tasked with identifying reductions of up to 15% in headcount, but those plans were paused following the leadership transition.
Venmo, with nearly 100 million users, remains one of PayPal’s most valuable assets, with analysts viewing it as a key driver of future growth and a potential acquisition target.
Shares of PayPal rose about 3% following the report, reflecting investor optimism that the restructuring could unlock value ahead of the company’s upcoming quarterly earnings.
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