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What Will Closing Its Malaysia Office Cost PayPal?

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Why PayPal is closing its Malaysian office

PayPal (PYPL) is planning to close its customer support office in Malaysia by the end of this year, a decision the company says is intended to align its investments and support operations to better meet its customers’ evolving demands. The Malaysian team has been serving PayPal customers in Asia and beyond since 2011. PayPal is expected to transfer the Malaysian team’s responsibilities to teams in other countries. The company also operates customer support offices in China, India, and the Philippines.

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PayPal to pay separation package to affected employees

In a statement cited by TechCrunch, PayPal said it would offer comprehensive separation packages to the affected employees in Malaysia. The size of PayPal’s Malaysian team was not disclosed, nor did the company reveal the cost of the separation package. However, the company looks to be on track to absorb some one-time severance payment costs related to the Malaysian office’s closing.

Customer support costs hit $1.5 billion

PayPal’s customer support and operating costs rose 7.1% to $1.5 billion last year, driving up overall costs and expenses by 21% to $13.3 billion. Meanwhile, expenses at Alphabet (GOOGL), Amazon (AMZN), and eBay (EBAY) rose 31%, 27%, and 13%, respectively, and fell 2.4% at Fiserv (FISV).

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