Board Cites Execution And Market Pressures
PayPal said on Tuesday that it is hiring HP’s Enrique Lores as its chief executive and president, replacing current CEO Alex Chriss, in a leadership change the company linked to concerns about execution and the pace of change.
Lores, who has served as chair of PayPal’s board since July 2024, will also take on the role of president. PayPal said the decision was made because the company’s pace of change and execution was “not in line with the Board’s expectations” given broader market trends.
Chriss joined PayPal in September 2023 from Intuit, where he succeeded Dan Schulman. PayPal said its chief financial officer and chief operating officer, Jamie Miller, will serve as interim CEO until Lores joins the company.
Earnings Shortfall And Outlook Shock
The appointment follows PayPal’s fourth-quarter results, which the company released on Tuesday. PayPal reported revenue and profit that missed expectations, as consumer spending weakened amid a broader cost of living squeeze and a softening labour market.
The company also forecast a decline in full-year profit, a projection that caught investors off guard because Wall Street had largely expected guidance pointing to growth instead. PayPal’s shares were down about 17.9% in premarket trading on Tuesday.
Lores’ Background And Priorities
Lores served as president and chief executive of HP for more than six years before taking on the role at PayPal. In a statement, he said that beyond product development, the company would focus on accountability for quarterly results.
“The payments industry is changing faster than ever, driven by new technologies, evolving regulations, an increasingly competitive landscape, and the rapid acceleration of AI that is reshaping commerce daily,” Lores said. He added that PayPal sits at the center of these changes and that he plans to lead the team to speed up the delivery of new offerings and guide the company’s direction in digital payments and commerce.
Featured image credits: Flickr
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