PayPal Announces Reorganization to Establish Venmo as a Separate Unit

PayPal has announced a reorganization of its business into three operating units, including a separate division for the popular payment app Venmo. The new CEO, Enrique Lores, has initiated this step to simplify the company’s structure and focus more on growth. Making Venmo a standalone segment is expected to make tracking its performance easier and strengthen the potential for a future sale of this business unit.

“To accelerate growth and unlock our full potential, we need to recommit to our core priorities,” Lores said in a statement.

Lores was appointed after former CEO Alex Chriss was removed last March amid slow growth and mounting competition. Under the reorganized structure, aside from Venmo, two other units will encompass PayPal’s consumer and merchant branches, as well as payment services including Braintree and the crypto division.

This reorganization announcement comes amid speculation that payment service provider Stripe might acquire PayPal or parts of its business. Analysts suggest that due to PayPal’s sizeable scale, it is more likely that certain assets rather than the entire company will be sold.

PayPal will provide more detailed information about this restructuring in its upcoming earnings call next week. This year, pressure from large technology companies and emerging fintech competitors has led to an approximate 12.7% decline in PayPal’s share price. However, following Wednesday’s announcement of the operational restructuring, the company’s shares rose by 2.6%.

Based in San Jose, California, the company’s profit forecast for 2026 was below Wall Street expectations, prompting this strategic change to address the shortfall.