Thursday, October 25, 2012

PayPal revenue up 23% so it's laying off up to 400

PayPal's suburban Omaha
operations center in LaVista
Related: Reddit Donate spurns PayPal for donations, goes with Iowa-based Dwolla in partnership with another payment startup called Stripe

PayPal, Ebay's payment unit, buoyed third quarter results of its parent by ending the quarter with 117.4 million active registered accounts, a 14% increase over the third quarter of 2011. Revenue increased 23% year over year and net total payment volume (TPV) grew 20% year over year to $35.2 billion.
     But the Omaha World-Herald says the company is celebrating that performance by cutting about 3% of its workforce (up to 400 jobs out of 13,000) to trim costs, according to an unnamed source.
PayPal is eliminating jobs primarily in its product and technology groups...
     [President David] Marcus, who took over in April, is leading an overhaul to streamline a business marked by excessive meetings and a monthslong project-approval process. He started the makeover in June by consolidating nine product groups into one. Workers also will be reorganized — moved from walled cubicles and offices to open rooms, where management will sit among staff.
     “We have told PayPal employees about plans under way to strengthen and simplify how we create and deliver consistently great products and brand experiences to our customers,” PayPal said in a statement. “We have not yet discussed how these plans may impact any existing jobs across our product, technology and marketing teams.”

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