PayPal Holdings is planning cost reductions and job cuts as new Chief Executive Officer Enrique Lores aims to reverse the fortunes of the payment company, which has faced intense competition in recent years.

According to a statement released on Tuesday, PayPal intends to achieve at least $1.5 billion in cost savings over the next two to three years. The company also reported first-quarter adjusted earnings per share of $1.34, surpassing the average analyst estimate of $1.27.

Lores, who assumed the role of CEO in March, has already begun restructuring the underperforming firm. Last week, PayPal announced a reorganization of its business lines and appointed Frank Keller as President of Checkout Solutions, Alexis Sowa as Interim Head of Consumer Financial Services, and Jeff Pomeroy as Interim Head of Payment Services.

During a presentation on Tuesday, Lores stated that in his first two months in the position, he identified opportunities to "simplify operations" and recognized "potential to reduce the cost structure." He further noted that the company would seek to reinvest in modernizing its technology.

In the official statement, Lores emphasized, "We are taking deliberate actions to focus our strategy, streamline the organization, and concentrate investments in areas where we believe they will have the greatest impact on improving our growth trajectory and cost structure. I am confident we can set the company on a more sustainable path for long-term growth."