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.
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