Report: PayPal could be cutting up to 400 jobs

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

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.