Ebay Inc. announced Monday that it will cut 325 full-time jobs from PayPal. The losses come as a part of the company’s effort to simply and speed up how products are developed for consumers and merchants.
Most of the soon-to-be eliminated positions will come from PayPal’s product and technology businesses. Ebay also plans to end contracts with 120 contractors globally.
The job cuts were expected, earlier reported this month by The Associated Press (AP). In a statement, eBay said the job cuts result “from a redesign of PayPal’s product organization, consolidating nine product groups into a single, more agile organization.” Parent company, San Jose, Calif.-based eBay Inc., reported to expect to deduct a pretax charge of around $15 million against fourth-quarter earnings from the restructuring.
The job terminations make up around 2.5 percent of PayPal’s 13,000 member work force.
“If we don’t change, we simply won’t be able to sustain PayPal’s global leadership position over time. And we will not let that happen,” said PayPal’s President, David Marcus. “To do this we need a simpler, streamlined place to work.”