PayPal announced today that as much as 3 percent of its workforce may be laid off shortly according to the plans of new President David Marcus.
The reductions are expected to affect approximately 325 in-house staff and another 120 outside contractors. PayPal currently employs about 13,000 people. The job cuts will be PayPal’s first major reductions since the financial crisis in 2008.
Competition has heated up in recent months in the payments sector with both merchants and consumers adopting new payment products such as Dwolla, Square and Stripe. The changes at PayPal are focused on streamlining the product development and launch cycle and will see 9 different company units consolidated into 1 for faster launch frames.
The full announcement by Marcus was posted on the company blog today:
About the Author: Melody Wigdahl
Melody Wigdahl is a 25 year veteran of the payments industry, and has been an international ECommerce specialist since 1993. For the last decade, her primary focus as been the area of alternative payments and real time bank payments.
Melody has been with UseMyServices since 2003, and enjoys the challenges of being involved with cutting edge technology on a daily basis.