Internet payments company PayPal will cut 325 jobs as part of a companywide reorganization, its president said Monday.
The layoffs will hit PayPal’s product and technology organization hardest. That’s where nine product groups will be collapsed into a single group, eliminating internal barriers between teams formed around products.
“Instead of being organized around projects, our teams will now be dedicated to products and focused on our customers—consumers, developers, small businesses and large retailers,” David Marcus, PayPal president, wrote in a memo that was posted online.
The changes will also hit around 120 contract workers who are based around the world.
“While PayPal is strong and performing well, making decisions that impact our employees was hard,” wrote Marcus. “So this is a difficult day at PayPal.”
He said he expects the changes will enable PayPal to introduce new products faster than before.
PayPal is owned by eBay and is one of three payment companies held by the online marketplace operator. The other two, which collectively make up eBay’s payments division, are Bill Me Later and Zong.
In its most recent quarter, the period from July to September, eBay said its payments division recorded net revenue of $1.26 billion. That was a jump of 23 percent from the same period in 2011.