PayPal plans $1.5B cost cuts amid slower checkout growth, focusing on AI and operational overhaul.

PayPal announced a $1.5 billion cost-cutting plan over the next two to three years as it faces slower growth in its checkout segment. New CEO Enrique Lores is driving a major operational overhaul, emphasizing artificial intelligence to improve product development, streamline processes, and enhance customer experience. The company is reorganizing into three business units and expanding its consumer financial services, especially through Venmo. Despite revenue growth, margins are tightening due to investments in checkout improvements and customer acquisition, with management aiming for gradual improvement and sharper execution going forward.