PayPal Cutting Jobs, Following Up On Previously Announced Reorganization Plans
There have been reports about PayPal laying off part of its staff, and now the company has come out and confirmed 325 layoffs in a blog post.
The post points to another post from June, when President David Marcus discussed consolidating PayPal’s product groups into a central global product organization led by Hill Ferguson, who was previously in charge of PayPal’s mobile division. In that post, Marcus told readers to expect to see more results of the changes over the next few months.
Some of those changes are being felt today.
“Unfortunately, making the right decisions on behalf of our customers meant we had to make some very tough decisions inside our company,” Macrus wrote in today’s post. “This morning we informed approximately 325 full time employees, primarily in our product and technology organizations, that their roles are being eliminated. We also are ending contracts with approximately 120 contractors globally.”
“While PayPal is strong and performing well, making decisions that impact our employees was hard,” Marcus adds. “So this is a difficult day at PayPal. These are good people, good friends and colleagues, who have played a role in creating PayPal’s strong global leadership position today. We appreciate all the contributions that they have made. And they are being treated with fairness and dignity, consistent with our culture and values.”
PayPal parent eBay reported its Q3 earnings earlier this month, including a 15% year-over-year increase in revenue and strong performance from PayPal, which on its own saw a 23% year-over-year revenue increase (and a 14% year-over-year increase in active registered accounts, putting the number at 117.4 million).