Paypal to cut 400 jobs – Bloomberg
Bloomberg have reported that PayPal is to shed as many as 400 jobs in an exercise to cut costs and increase efficiency. Bloomberg claim to have got the story from “a person with knowledge of the plans”.
Apparently, the 400 jobs – roughly 3% of PayPal’s total workforce – will predominantly be in the product and technology groups of the firm. It is not known whether there will be any job losses in the UK or Ireland.
It is thought that the initiative comes from the new PayPal President David Marcus. The Bloomberg article reports that Marcus “is leading an overhaul to streamline a business marked by inefficiencies such as excessive meetings and a months-long 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.”
Marcus joined PayPal when his start-up Zong was bought by PayPal in 2011. When Marcus was appointed President earlier in the year, eBay Inc. CEO John Donahoe said he hoped that he would bring some ““startup energy” to PayPal.
We were impressed a few weeks ago when we read comment from David Marcus that PayPal were reviewing their policies and processes relating to account freezes and payment holds.
It seems that this restucturing is further evidence that he is breathing fresh life into the bloated and moribund PayPal organisation. Such reinvigoration will be vital if PayPal is to profit from the mobile payments goldrush, where smaller start ups have proved to be able challengers and more nimble when it comes to innovation.