11:24 AM EDT, 05/05/2026 (MT Newswires) -- PayPal (PYPL) said it was targeting at least $1.5 billion in cost cuts over the next few years, while the payments company maintained its full-year earnings outlook.

Last week, PayPal said it would reorganize into three businesses to streamline its operations. Those units are checkout solutions and PayPal, consumer financial services and Venmo, and payment services and crypto.

"We are realigning the organization to sharpen strategic focus, eliminate duplications, and remove layers,"Chief Financial Officer Jamie Miller said during an earnings call on Tuesday, according to a FactSet transcript. "In parallel, we will be accelerating efforts to deploy (artificial intelligence) and automation across our operations and technology platform."

These initiatives, combined, will drive at least $1.5 billion in gross savings over the next two to three years, Chief Executive Enrique Lores told analysts.

"Looking ahead, we expect to deploy these cost savings to reinvest in growth and respond to business headwinds, improving our overall financial profile over time,"Miller said. "During 2026 and into 2027, we will be transitioning teams, establishing new ways of working and building systems and processes to run the business."

PayPal continues to expect its 2026 non-GAAP earnings to be down low-single digits to "slightly positive,"compared to last years'$5.31 tally. The FactSet-polled consensus is for $5.31.

The stock plunged 8.7% intraday Tuesday, and is down 21% since the start of the year.

For the ongoing quarter, the company expects non-GAAP EPS to decline by a high-single digit, or approximately 9%, from $1.40 a year earlier. Analysts are looking for $1.34.

The company's non-GAAP earnings increased to $1.34 in the first quarter from $1.33 a year earlier, compared with Wall Street's $1.27 view. Net revenue improved 7% to $8.35 billion, ahead of the Street's view for $8.05 billion.

Price: 46.06, Change: -4.33, Percent Change: -8.59