PayPal makes Venmo a separate unit as CEO Lores looks to boost growth
The PayPal logo is seen on a smartphone in front of the same logo displayed in this illustration taken September 8, 2021. REUTERS/Dado Ruvic/Illustration
April 29 : PayPal said on Wednesday it would reorganize its business into three operating units, including a separate Venmo-focused division, as new CEO Enrique Lores simplifies the payments provider and sharpens its focus on growth.
The move to make Venmo a standalone segment will make it easier to track its performance or potentially sell the business, CNBC reported earlier on Wednesday.
"To accelerate growth and unlock our full potential, we need to recommit to our fundamentals," Lores said in a statement.
The company appointed Lores in March after ousting then-CEO Alex Chriss, who had been brought in to guide the firm through a period of slowing growth and rising competition.
Besides Venmo, the other two units will bring together PayPal's consumer and merchant arms apart from a payment services arm that houses its Braintree business and crypto division.
The restructuring comes months after Bloomberg reported that payments firm Stripe was considering an acquisition of PayPal or parts of the company.
Some analysts have said the sale of certain PayPal assets was more likely than an outright buyout, given the size of the business.
The San Jose, California-based company will provide more details on its overhaul during its earnings call next week.
PayPal had issued a profit forecast for 2026 that fell well short of Wall Street expectations as it battled intensifying competitive pressures in its core business from large technology companies and newer fintech rivals.
Shares of the company closed up 2.6 per cent on Wednesday. The stock has slipped roughly 12.7 per cent this year, as of the last close.
