eBay's PayPal Confirms Job Cuts
Online auctioneer eBay (NAS: EBAY) confirmed today that it is cutting 325 full-time positions in its PayPal business unit in an effort to reduce costs and streamline operations. These jobs were primarily in product and technology departments, and the company is also terminating contracts with 120 contractors globally.
The news comes following a Bloomberg report earlier this month hinting that PayPal President David Marcus was preparing to overhaul the division and reduce inefficiencies, after being promoted this past March. PayPal is being restructured and nine product groups will be consolidated into one organization. The changes hope to simplify and accelerate product development.
eBay said it will take a pre-tax restructuring charge of roughly $15 million in the fourth quarter related to the job cuts, which will not affect non-GAAP results since they will be considered one-time items.
The article eBay's PayPal Confirms Job Cuts originally appeared on Fool.com.
Evan Niu, CFA, has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend eBay. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
