eBay/PayPal Joins the Layoff Kings Club, Fires Workers and Contractors
Oct 29th 2012 12:11PM
It was just last week that 24/7 Wall St. announced the new Layoff Kings For Late 2012. While eBay Inc. (NASDAQ: EBAY) was not officially listed as a layoff company, we had noted that there was a prior indication that eBay was going to announce streamlining efforts which included layoffs for its PayPal business unit. eBay is confirming that it will have layoffs now, on a day where equity markets are closed.
PayPal today informed approximately 325 employees of "job eliminations" which are called firings to the rest of us. And for the infomercial for layoffs… But wait, there's more. PayPal said that it is also ending contracts with approximately 120 contractors globally.
eBay has outlined plans for a fourth quarter pre-tax restructuring charge of approximately $15 million due to the staff reductions in eBay's PayPal business unit. The layoffs were said to be targeted at the product and technology organizations. eBay did say that the charge will hit only the GAAP earnings rather than the non-GAAP results.
eBay said, "The reduction results from a redesign of PayPal's product organization, consolidating nine product groups into a single, more agile organization. The intent is to simplify and speed up how products are developed." PayPal currently has more than 117 million active accounts.
Read Also: Meet the New Layoff Kings of Late 2012
JON C. OGG
Filed under: 24/7 Wall St. Wire, Corporate Governance, Internet, Labor, Labor & Unions Tagged: EBAY