On January 22, 2025, Hewlett-Packard’s then-CEO Enrique Lores speaks on CNBC outside the World Economic Forum in Davos, Switzerland.
Jerry Miller CNBC
paypal Chief Executive Officer Enrique Lores told executives this week that the company plans to reorganize its reporting lines to separate the popular mobile payment app Venmo from the company’s other businesses, CNBC exclusively reported.
Venmo will soon become a separate division within PayPal, making it easier to track its progress and potentially sell the business to another company, according to people familiar with the change.
PayPal is hiring a digital banking executive to lead its new Venmo division, said the people, who requested anonymity because they were not authorized to speak publicly.
The remaining two divisions will be the PayPal-branded business for merchants and consumers, and the Payment Services division, which includes the Braintree division and cryptocurrency business.
Mr. Lores, who took over as CEO of PayPal in March after six years as CEO of computer maker HP, is betting that a sharper corporate structure can reignite growth at the struggling company. apple, google And Stripe is joining the fray over e-commerce transactions. Mr. Lores replaced Alex Criss, a former Intuit executive who struggled to rebuild the stock, which has fallen about 80% from its pandemic-era highs.
Bloomberg reported in February that potential bidders, including rival Stripe, were interested in part or all of PayPal after its stock price plummeted. Semaphore said the company has hired bankers to counter takeover bids and activist activity.
PayPal declined to comment for this story.
PayPal’s stock price soared about 3% following the CNBC press release.
Staff reductions have stalled
The structural changes come amid the imminent threat of widespread layoffs, similar to those seen at payments rivals. block. Earlier this year, PayPal executives were ordered by former CEO Kriss to cut staff by 15%, but that effort was left in limbo when Kriss replaced him, one of the people said.
With about 100 million users, Venmo is considered perhaps PayPal’s most valuable single asset due to its growth prospects. Analysts say the company is an important target for potential acquirers and could attract a premium valuation.
The changes include the departure of two key executives: Diego Scotti, who led the consumer group that included Venmo, and Michelle Gil, who was overseeing the small business group that is being disbanded, the people said. Mr. Scotti and Mr. Gill did not respond to requests for comment.
The company also plans to launch a new artificial intelligence transformation group led by former engineer Anshu Bhardwaj. walmart According to sources, he is a technology company executive. The Financial Services division, which supports the other major business segments, will be run by former director Scott Young. goldman sachs Officials said he was a manager at a consumer bank.
PayPal will report its first quarter results next week.
