PayPal CEO Pitches AI-Powered Turnover, Plans 20% Workforce Cut

Enrique Lores, CEO of PayPal, declared that the company is "becoming a technology company again" by embracing artificial intelligence. To facilitate this shift, a new team focused on "AI transformation and simplification" will be established, and approximately 20% of the workforce, translating to over 4,500 jobs, will be eliminated over the next two to three years. During the first-quarter earnings call, Lores emphasized the necessity of modernizing the tech platform, transitioning to a "cloud-native" model, and enhancing developer productivity through AI. This initiative is projected to yield at least $1.5 billion in savings, particularly in customer service and risk management. Despite reporting $8.4 billion in revenue for Q1 (a 7% year-over-year increase), the company anticipates weak guidance for Q2, resulting in an 80% decline in stock value since its peak in 2021. Lores expressed willingness to sell Venmo if it benefits shareholder value.