The move would make it easier to track Venmo's performance or sell the app, which has almost 100 million users
PayPal $PYPL is restructuring Venmo into a separate segment within the company, according to CNBC, a move that would make it easier to monitor the mobile payments app's performance or pursue a sale.
The restructuring, which Lores communicated to managers this week, will divide the company into three distinct reporting segments: an independent Venmo operation, a merchant- and consumer-facing PayPal business, and a payments services arm housing Braintree and crypto, according to CNBC.
A search is underway for a digital banking veteran to head the Venmo division, CNBC reported. The shake-up will also result in the exits of Diego Scotti and Michelle Gill — Scotti having run the consumer-facing group that housed Venmo, and Gill having managed a small business unit that is now being wound down.
Boasting close to 100 million users, Venmo is widely regarded as a crown jewel among PayPal's holdings — its growth trajectory making it a particularly attractive target should any sale process move forward, with analysts suggesting it would command a hefty price, according to CNBC.
Having led HP $HPQ for six years before assuming the PayPal CEO role in March, Lores is wagering that cleaner organizational lines can help the company recapture momentum it has ceded to rivals including Apple $AAPL, Google $GOOGL, and Stripe. His predecessor, Alex Chriss — previously an executive at Intuit $INTU — departed after the company's share price shed roughly 80% of its value from the heights reached during the pandemic.
PayPal stock rose about 3% following publication of CNBC's report. The company declined to comment.
