PayPal CEO Enrique Lores used the company’s first-quarter earnings call to outline an AI-driven turnaround, telling investors the fintech giant must recommit to its technology roots by aggressively adopting AI across development, customer service, and risk management. Lores announced a dedicated AI transformation team reporting directly to him, tasked with redesigning core processes function by function.
The AI push is expected to contribute to at least $1.5 billion in cost savings over two to three years, alongside a planned reduction of around 20% of PayPal’s workforce — over 4,500 jobs. Lores framed the layoffs as removing organizational layers rather than a response to weak performance, though PayPal forecast soft second-quarter guidance despite first-quarter revenue of $8.4 billion. The stock has fallen over 80% from its 2021 peak.