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PayPal lays off 325 employees amid company-wide restructuring

PayPal has eliminated more than 400 jobs as it consolidated several of its product groups.

The company laid off 325 full-time employees, primarily in its product and tech groups, as well as 120 contract workers.

The move comes after PayPal said it redesigned its product organisation and collapsed nine product groups into one.

"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," PayPal president David Marcus wrote in a blog post.

Marcus said PayPal is "strong and performing well," the layoffs are necessary to simplify the company.

"Moving forward, I'm confident these changes will make PayPal even better and stronger," Marcus continued. "Our customers can expect faster innovation and great products and experiences that make their lives simpler. That's our commitment — every day."

Marcus said affected employees "are being treated with fairness and dignity, consistent with our culture and values."

"This is a difficult day at PayPal," he said. "These are good people, good friends and colleagues, who have played a role in creating PayPal's strong global leadership position today. We appreciate all the contributions that they have made."

In June, PayPal gave its website a major overhaul, including an easier login process, smoother navigation, simplified menus and labels, and a new "explore" link that highlights new PayPal projects.