PayPal plans AI-driven overhaul and layoffs to save $1.5B amid weak growth forecast.

PayPal CEO Enrique Lores announced a strategic shift to embrace AI technology to modernize the company and improve efficiency. The company is forming a new AI transformation team and aims to become cloud-native while integrating AI in development, customer service, and risk management. This move accompanies a planned workforce reduction of about 20%, or over 4,500 jobs, as part of a broader cost-saving effort expected to save $1.5 billion over 2-3 years. Despite a 7% revenue increase in Q1, PayPal’s stock has fallen over 80% since 2021, and the company forecasted weak Q2 guidance, prompting the need for restructuring and innovation to boost shareholder value.