Report: PayPal could be cutting up to 400 jobs

Report: PayPal could be cutting up to 400 jobs

Summary: Things look grim at PayPal as reports are circulating about major layoffs at the payments processing giant.

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PayPal could be cutting up to 400 jobs amid a major reorganization, according to a new report from Bloomberg on Friday.

That equates to roughly 3 percent of payment processing company's workforce.

Citing unnamed sources, Bloomberg reports that most of the cuts will be to the product and technology units over the next few weeks.

There aren't many more details available now except that this is part of a company-wide overhaul by PayPal president David Marcus. Essentially, these layoffs are just one part in Marcus's strategy of revamping the digital payments provider in the face of competition from the likes of Square and Intuit, among others.

Earlier on Friday, Anuj Nayar, senior director of global communications at PayPal, asserted in an unrelated blog post on the official PayPal blog that PayPal is "not a mobile wallet company," explaining that "mobile wallets don't solve any customer pain points by themselves."

Instead, PayPal is trying to position itself as a digital experience that basically thinks for itself:

PayPal’s cloud approach evolves the wallet from a physical thing — whether a traditional wallet or a phone — to a seamless, connected experience that follows you wherever you go and feeds you what you want, when you want it. Whether that’s a deal on your phone as you walk past the coffee shop or a $20 coupon that appears in your digital wallet when you’ve been looking at grills online on your laptop and is applied when you buy the grill – whether online or in store. Putting your wallet in the cloud and making it smart enough to work out the best way to pay for you, solves a real consumer problem that mobile wallets simply do not.

Still, it's hard not to define that as a mobile -- or just simply, digital -- wallet. It's one thing when a company tries to establish a product category that doesn't exist yet. It's another when the company doing so doesn't understand it.

The report of layoffs at the eBay subsidiary is hot on the heels of the news that AMD is preparing to layoff as much as 30 percent of its workforce.

On Thursday, AMD revealed that it suffered from lower than expected average selling prices during Q2, forcing the chipmaker to reduce its outlook for the third quarter for the second time by 10 percent.

CNET reports that an official announcement regarding AMD could come as soon as next week.

Topics: E-Commerce, Mobility, IT Employment, Tech Industry

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9 comments
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  • Layoffs and margers, the economy is saved!

    Of course, adding in 10 more companies that all do what paypal does wouldn't help either...

    Still, reading up on articles after searches with words like "paypal customer ripoff" or "paypalcomplaints organization" show that a lot of people really don't want to do business with that company any longer...

    Can voting with one's wallet make a difference? Or did the lack of jobs and wages in our new normal render more people losing their wallets?
    HypnoToad72
  • GOOD!!!

    Karma's a bitch ain't it!

    (Precenting people to freely support the causes they want to support, such as Wikileaks.)
    Han CNX
    • too much competition

      too much competition is a bad thing.


      Consumers may win at first, but then all standards and quality go down the shitter.

      And in the end, its the workers that get shafted.


      Remember paypal before there was live phone/tech support? (well they were next to impossible to get a hold of).

      Well, because too much competition, digital wallet companies might be heading that way again to cuts costs, meaning consumers and business loose out. The things is paypal loosing business to those other companies, means they are loosing revenue, and since its a low margin type of game, it takes transactions in bulk (a lot of small transactions) to make it worthwhile.
      ShqTth
      • Re: too much competition is a bad thing.

        Who says competition is "too much"?
        ldo17
  • The last time I used PayPal's customer support

    it was very good.

    Obviously the company is being absurdly extravagant and this needs to change.
    jorwell
    • PayPal is the worst payment company ever.

      While I feel sad for the loss of people's income, I would not mind if PayPal simply closed its doors forever.
      Bruizer
  • PayPal sukz

    PayPal Sux, of all my friends they al complain about PayPal and how they suk at customer support. I have had numerous problems with a business account I had with them, resulting in me terminating the business account but they kept charging me for that service. After a dozen tries to get PayPal top stop billing me, they still can't get it correct. When someone terminates an account and is fully paid up they should be allowed to just leave without any issues. As others have said just Google "PayPal Complaints" and see what comes up. I wish PayPal would foldup, any other company surely would do a much better job with a simple money transfer, how hard can that be ?
    QEVO
  • If I have to use PayPal ...

    If I have to use PayPal, its no sale!

    I just won't buy if PayPal is the only way to pay.
    wally_333
  • Square

    Don't know much about them but they seemed to work well. My wife used them to buy some drinks at Circ'duSolei, no muss no fuss.
    wally_333