Photo Credit; Getty Images
PayPal's chief executive Enrique Lores has begun reshaping the company's internal structure, separating Venmo into its own dedicated business unit, according to people familiar with the matter. The shift marks the first time the peer-to-peer payments platform will operate independently within the company.
The decision is part of a wider reorganization designed to simplify operations and sharpen strategic focus. Under the new structure, PayPal will operate through three core segments: Venmo as a standalone entity, a branded payments division serving
merchants and consumers, and a broader services arm that includes Braintree and cryptocurrency operations.
Executives believe isolating Venmo will provide clearer visibility into its performance while also making it easier to pursue strategic options, including a potential sale. The company is said to be exploring candidates with digital banking experience to lead the newly independent unit.
The overhaul comes at a critical moment. PayPal has struggled to maintain momentum as competition intensifies from major technology and payments firms. Lores, who took over leadership earlier this year after a long tenure at HP, is betting that structural clarity will help revive growth and restore investor confidence.
Recent declines in PayPal's share price have drawn attention from potential buyers interested in acquiring parts, or possibly all, of the business. Venmo, with its vast user base and strong growth potential, is widely seen as the most attractive component.
Internally, the changes arrive alongside leadership departures and unresolved cost-cutting measures. Plans for significant workforce reductions were previously discussed but remain uncertain following the CEO transition.
Two senior executives overseeing key divisions are set to exit as their units are reorganized or dissolved. Meanwhile, PayPal is also investing in a new artificial intelligence transformation initiative and reinforcing its financial services operations.
