PayPal closes $850M venture arm amid restructuring

PayPal Holdings Inc. is shutting down its corporate venture capital arm, PayPal Ventures, as part of a sweeping restructuring under new leadership. The decade-old investment group, which managed over $850 million across more than 80 startups, will wind down operations, a company spokesperson confirmed.

The decision follows a leadership change earlier this year. Former CEO Alex Chriss departed in February, and the board appointed Enrique Lores, previously the chief executive of HP, to take over. A company statement indicated Chriss's pace of change did not meet board expectations. Since taking the helm, Lores has initiated a broad reorganization aimed at simplifying the company and improving efficiency.

The venture arm's staffing had already dwindled significantly, dropping from more than ten employees late last year to just two remaining. The company is now exploring strategic options for the unit, including potential secondary-market sales of some of its venture holdings, with investment bank Jefferies reportedly advising on possible deals.

This closure is a component of a larger cost-cutting initiative. In May, PayPal announced it was targeting at least $1.5 billion in savings...