PayPal’s C-Suite Shake-Up Paves the Way for a New Era Under Lores

PayPal CEO Enrique Lores reshapes leadership with two top exits and a new AI chief, splitting operations into three divisions ahead of May 5 earnings.

The digital payments giant is entering a critical earnings period with a radically different leadership structure, as two top executives exit simultaneously and a dedicated AI chief takes a seat at the table. The moves, effective April 29, come just days before PayPal reports quarterly results on May 5.

A Clean Break With the Past

Diego Scotti, who oversaw the consumer group and spearheaded Venmo’s expansion alongside products like PayPal Everywhere and PayPal Ads, is leaving the company. So is Michelle Gill, the executive vice president responsible for small business and financial services, who laid the groundwork for AI-powered payment experiences. Their joint departure is more than coincidence — it signals CEO Enrique Lores is drawing a line under the previous leadership era.

Lores, who took the helm on March 1 after a six-year stint as HP’s chief executive, has moved quickly to reshape the organization. The board brought him in after an internal review concluded that while the company had made “some progress,” the pace of execution was insufficient. The stock gained roughly 3% on the news of the reorganization.

Three Pillars, One AI Overlay

The new operating model splits PayPal into three distinct divisions. Frank Keller takes charge of checkout solutions, Alexis Sowa steps in as interim head of consumer financial services and Venmo, and Jeff Pomeroy assumes interim leadership of payment services and crypto. Antonio Lucio becomes chief marketing and corporate affairs officer.

The most striking addition is the creation of a chief AI transformation and simplification officer role, filled by Anshu Bhardwaj. Placing artificial intelligence at the C-suite level — rather than burying it within a single department — underscores Lores’s intent to weave the technology into every corner of the business.

Venmo in the Spotlight

The restructuring comes against a backdrop of heightened M&A speculation. PayPal has reportedly hired investment bankers to defend against takeover interest — including from rival Stripe — and to keep activist investors at bay. Venmo, with its roughly 100 million users, is widely viewed as the company’s most valuable and most vulnerable single asset. Its separation into a dedicated reporting segment makes performance tracking easier, but it also raises questions about whether the app is being groomed for a potential sale.

A Cheap Stock, but Insider Caution

Shares closed Wednesday at €42.41, up about 8% over the past 30 days. Yet the stock remains deeply in the red for 2025, down nearly 15% year to date. With a price-to-earnings ratio of 9.4, the valuation is historically cheap. That hasn’t stopped insiders from selling: executives have offloaded roughly $4 million worth of shares over the past three months.

The Earnings Test

When PayPal reports on May 5, investors will get their first real look at how the new divisions will report and be measured. Lores must convince the market that this is more than an organizational chart reshuffle — and demonstrate how the company plans to more profitably monetize its roughly 439 million active user accounts. The earnings call will be his first real test of credibility.