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EcommerceBytes-NewsFlash, Number 2913 - October 15, 2012 - ISSN 1539-5065    4 of 5

Rumored PayPal Layoffs Could Affect Hundreds

By David A. Utter
October 15, 2012

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The grim specter of job loss hovers over online payment titan PayPal. The scythe of layoffs courses with the entropy that a combination of unemployment and economic weakness engenders.

The Fear has come to PayPal, whose $1.36 billion in revenue represented 40 percent of parent company eBay's revenues in Q2 2012. A 26 percent year over year growth may not be enough to stave off rumored layoffs of hundreds of workers from PayPal's workforce of nearly 13,000 people.

Mercury News cited an anonymous source in forecasting the job losses - 300 to 400 people face the unpleasant uncertainty of whether they will be the ones shown the exit door at PayPal one last time.

Such streamlining under new PayPal president David Marcus, at press time, received no official confirmation from the company. The firm's PR department did get to sacrifice a portion of a warm fall weekend to address the story in a statement to EcommerceBytes and media outlets:

PayPal spokesperson Anuj Nayar said, "They are rumors. We don't comment on rumors or speculation. We have already 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. We have not yet discussed how these plans may impact any existing jobs across our product, technology and marketing teams. Any changes will be be communicated to our employees first, not to media."

Whatever staffing changes take place, there seems to be one segment of PayPal poised for more dramatic growth. Mobile payments, handled in a volume of $4 billion in 2011, could reach $10 billion in volume in 2012.

About the Author
David A. Utter is a freelance writer based in Lexington, KY. Find him on LinkedIn.

About the author:

David A. Utter is a freelance writer based in Lexington, KY. He has covered technology topics from search to security to online business and has been quoted in places like ZDNet and BusinessWeek. He considers his appearance on NPR's "All Things Considered" with long-time host Robert Siegel a delightful highlight. Send your tips to media@davidautter.com and find him on Twitter @davidautter and on LinkedIn.

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