In order to become more like the success Wall Street considers PayPal to be and less like the slow bureaucracy it is reported to be, newly-instated president David Marcus has decided to cut 325 jobs. The restructuring plan was designed to improve the company’s profit margins and to head off competition.
The cuts will decrease the company’s 13,000 member workforce by 3 percent.
PayPal, the payment transfer service owned by eBay (NASDAQ:EBAY), announced on Monday that nine product-development groups would be combined into a single unit. As Marcus told Reuters, the layoffs were necessary because the resulting unit would “have a lot of duplication of roles.”
Catalysts are critical to discovering winning stocks. Check out our newest CHEAT SHEET stock picks now.
“It’s clear that the restructuring is just as much about keeping costs down in the face of a turbulent period ahead as well as retaining the simplicity of design across the various divisions of the company,” he said.
The company’s restructuring efforts are meant to help engineers and designers develop new products and services more quickly so that the company can keep ahead of its rivals including Square, Stripe and Dwolla.
eBay plans to go through with the layoffs despite reporting strong third quarter earnings last week. The results showed that Paypal has more than 117 million active registered accounts, an increase of 14 percent from the year-ago quarter, and that revenue increased by 23 percent year-over-year.
Don’t Miss: Can Verizon Deal Help Nokia Rise From the Dead?