The main Irish unit of online payments firm PayPal last year recorded more than a four fold increase in pre-tax profits to €54.57m.
The 333% increase in pre-tax profits at Paypal Europe Services Ltd last year came ahead of a Paypal decision during the first quarter of this year to cut its Irish workforce in Dublin and Dundalk.
A note attached to the new accounts filed by the Blanchardstown registered firm show that the associated restructuring charges from this year's job losses “are estimated to be in a range of €13m to €16m”.
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Earlier this year, the firm informed workers that it was proposing to cut 307 jobs from its Irish operations in Dundalk and Dublin.
The note attached to the accounts states that the primary objective of the jobs reduction “is to streamline and optimise PayPal’s global operations and enhance operating efficiency”.
The surge in pre-tax profits last year from €12.6 million to €54.57 million followed revenues increasing by 25% from €221.96m to €276.99m.
Last year numbers employed at the firm increased by 133 from 2,611 to 2,744 with 1,322 employed in customer support and 1,422 in general and administrative.
Staff costs last year increased by 10% from €158.88mto €174.14m that included redundancy costs of €4.5m and share based payments of €30.8m.
Directors’ pay totalled €510,000 made up of emoluments of €485,000 and €25,000 in pension contributions.
The principal activity of the company is providing customer support services, risk operations services, corporate administrative services and other shared services on behalf of the Paypal Group.
The directors state that they are satisfied with the performance of the company which is broadly in line with expectations.
They state that increased revenues in 2021 “reflects an increase in the stock based compensation driven by the increase in share price and related increase in cost plus remuneration.
The directors state that the firm continued with its relationship with IDA Ireland in 2021.
The company recorded post tax profits of €52.42m last year after paying corporation taxes of €2.14m.
At the end of December last the firm had shareholder funds of €77.22m that included accumulated profits of €60.49m.
The firm’s cash funds increased from €33m to €51.2m.
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