PayPal says it will use more AI and cut costs as it reorganizes

In short: PayPal says it is “becoming a technology company again” by using more AI, reorganizing the business, and targeting $1.5 billion in savings while cutting jobs.

What happened

PayPal discussed its plans during its first-quarter earnings call. CEO Enrique Lores said the company wants to modernize how it builds and runs its products, and it plans to “aggressively” use AI in its software development work. AI here means computer systems that can help with tasks like writing and checking code, similar to an autocomplete tool but for larger pieces of work.

PayPal also said it is forming a new internal team focused on “AI transformation and simplification.” The goal is to redesign day-to-day work across the company, including areas beyond coding, such as customer service, support operations, and risk management.

Alongside the AI push, PayPal is reorganizing into three business groups: checkout solutions and PayPal, consumer financial services including Venmo, and payment services and crypto. Bloomberg also reported PayPal plans to cut around 20% of its workforce over the next two to three years, which would be more than 4,500 jobs.

Why it matters

For regular PayPal and Venmo users, this could change how fast new features arrive and how support works, since AI tools are often used to speed up routine tasks. For workers, the story is more direct. PayPal is linking automation and restructuring to major cost savings, and that is happening at the same time as planned layoffs.

Source: TechCrunch AI