A multipurpose tool includes bypass shears with handles that fold around the shears into a compact configuration in which the blades of the shears are hidden. A sharp-edged cutter is removable from the shears for resharpening or replacement, in one version of the tool. A blade safety lock holds the blades closed and is automatically engaged as the handles are folded. The handles are comfortably shaped and may include overmolded elastomeric cushioning portions.