PayPal announced it’s firing employees and rebuilding itself around artificial intelligence to save $1.5 billion. The payments giant says it’s “becoming a technology company again” after years of falling behind competitors.
The company wants to use AI to automate tasks that humans currently do, from customer service to fraud detection. PayPal’s stock has struggled as newer payment apps like Venmo (which it owns) and Apple Pay have eaten into its business.
The Old King Fights Back
PayPal was once the undisputed ruler of online payments. But the 25-year-old company has watched Apple, Google, and dozens of startups steal customers with faster, prettier apps. Now PayPal is betting that AI can help it catch up.
The restructuring involves cutting jobs across multiple departments while investing heavily in machine learning systems. PayPal wants AI to handle routine transactions, spot suspicious activity, and even help customers manage their money.
The $1.5 billion in savings will come from both job cuts and AI doing work that previously required large teams of people.
What’s Next
PayPal plans to roll out new AI features throughout 2024, though it hasn’t revealed specifics. The company hopes artificial intelligence will make its services faster and cheaper than competitors. Whether customers will notice the difference remains to be seen.
