Paypal Ventures to Close as Company Restructures Under New Leadership

WHO:

Techmeme - PayPal is restructuring under new CEO Enrique Lores.

Fortune - The headcount of PayPal Ventures has shrunk from more than 10 to only two.

WHAT:

Techmeme - PayPal is shuttering its 10-year-old PayPal Ventures arm.

Fortune - PayPal Ventures has backed more than 80 companies across three funds totaling more than $850 million.

Fortune - The performance of the venture fund’s portfolio contributed 10 cents to PayPal’s $1.53 earnings per share in the fourth quarter of 2025.

Fortune - PayPal is exploring the sale of some of its positions on the secondary market and has hired Jefferies to assist with potential transactions.

Fortune - PayPal is reportedly targeting layoffs of 20% of its staff over the next two or three years.

WHERE:

Fortune - PayPal Ventures is part of PayPal, which was spun off from eBay.

WHEN:

Fortune - PayPal established its venture arm in 2016.

Fortune - Alex Chriss was ousted as CEO in February.

Fortune - The company intends to deliver at least $1.5 billion in savings over the next two to three years.

WHY:

Fortune - The restructuring follows concerns from the board of directors that PayPal was falling behind competitors like Stripe and Apple.

Fortune - The previous CEO's tenure saw a stock drop of more than 30%, prompting the need for a change in leadership.

HOW:

Fortune - Enrique Lores has promised to revamp the fintech, including putting the consumer payments app Venmo into a separate business vertical and restructuring leadership.

(UPDATED June 17, 2026 04:25 UTC)

PayPal is restructuring under new CEO Enrique Lores, who has announced the closure of its ten-year-old PayPal Ventures arm, which has seen its headcount shrink from more than ten to just two. The venture fund, which backed over 80 companies with more than $850 million across three funds, contributed ten cents to PayPal's earnings per share in the fourth quarter of 2025, but the company is now exploring the sale of some positions and plans to lay off 20% of its staff over the next two to three years. This shift comes as the board expressed concerns that PayPal was lagging behind competitors like Stripe and Apple, prompting Lores to promise a revamp of the fintech, including separating the consumer payments app Venmo into its own business vertical.