PayPal Reorganizes into Three Business Units, Steps Up AI Push

PayPal’s core branded checkout business faces competition from Apple Pay, Shopify and others. Fourth-quarter adjusted earnings of $1.23 per share and revenue of $8.68 billion, announced on February 3, 2026, both fell short of market expectations. The board subsequently replaced the chief executive, with Enrique Lores taking over on March 1. The restructuring is seen as critical to reversing slowing growth and weak execution.

On April 29, 2026, PayPal announced that it would organize its operations into three units: Checkout Solutions and PayPal; Consumer Financial Services and Venmo; and Payment Services and Crypto. It also appointed Anshu Bhardwaj as its first chief AI transformation and simplification officer. On May 5, the company further disclosed that it expected the organizational changes and AI to generate at least $1.5 billion in annualized cost savings over the next two to three years.