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EcommerceBytes-NewsFlash, Number 2925 - October 31, 2012 - ISSN 1539-5065    3 of 6

eBay Makes $15 Million Restructuring Charge Due to PayPal Layoffs

By Ina Steiner
October 31, 2012

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eBay will make a fourth-quarter pretax restructuring charge of approximately $15 million related to PayPal layoffs announced on Monday. PayPal laid off approximately 325 full-time employees, primarily in its product and technology organizations, and is ending contracts with approximately 120 contractors globally.

In announcing the impact on finances, eBay characterized the layoffs as "PayPal Product Simplification." In a statement, eBay wrote, "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 expects to continue its strong global growth momentum and leadership through online merchant expansion and share of checkout, by driving payments innovation at point-of-sale retail for large, medium and small businesses, and by engaging consumers online and offline with payments products and experiences that offer choice, flexibility, simplicity and security. PayPal currently has more than 117 million active accounts."

PayPal President David Marcus announced the layoffs on the PayPal blog on Monday.

About the author:

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.

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