PayPal targets $1.5 billion in savings over two to three years, with AI driving 40% of reductions through automation and efficiency gains.
PayPal CEO Enrique Lores announced a strategic reset at Bernstein’s conference, focusing on AI integration and cost reductions. The company aims to cut $1.5 billion in gross run-rate costs over the next two to three years, with AI contributing 40% of savings through automation and process improvements.
The plan includes modernizing PayPal’s technology stack and reorganizing into three core businesses: Checkout, consumer financial services, and payment processing. Priorities shift toward sustainable profitability and stronger monetization of Venmo and Braintree, moving away from volume-driven growth.
Lores, within his first 90 days as CEO, emphasized PayPal’s global scale and risk management capabilities but acknowledged the need to modernize infrastructure and refocus on consumer needs.