Ebay has dumped 325 employees and 120 contractors in what it is calling a ‘consolidation’ of its PayPal product groups. The restructuring is expected to cost the company $15M over the fourth quarter.
The consolidation will take 9 product groups and compress them into a singe group which controls PayPal products globally. “The reduction results from a redesign of PayPal’s product organization, consolidating nine product groups into a single, more agile organization, says eBay. “The intent is to simplify and speed up how products are developed.”
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The stripping down of PayPal’s product group is part of its efforts to become a lighter, faster company, and doesn’t reflect any direct issues with earnings. PayPal ended the third quarter with 117.4 million active registered accounts, a 14% increase over the third quarter of 2011. Revenue increased 23% year over year. eBay also posted strong results, with $3.4B in revenue.
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