Auction giant eBay to close Irish site after being asked to leave by PayPal

Internet giant eBay is shutting an operations site in Ireland after its former sister company PayPal asked it to leave.

The online auction house is expected to close the 150-staff facility in Dundalk, Co Louth, in spring next year.

The company said PayPal, with whom it shares the building and who took control of it after both firms split last year, has asked it to vacate the building.

"We can confirm that PayPal has served us notice as tenants of its Dundalk facility," an eBay spokesman said.

"We will begin a formal consultation process with our colleagues in Dundalk and will share any further information with them as a matter of priority."

EBay bought online payments firm PayPal in 2002 but the group was divided into two separate companies in July last year.

PayPal took over as landlords of the Dundalk facility and eBay became their tenants.

The lease was due for renewal in July next year, but a PayPal source confirmed it decided not to renew the lease.

PayPal is planning to expand their business next year at the Co Louth operation and wanted the extra space.

EBay trumpeted the opening of its European, Middle East and Africa operations just three years ago - vowing to employ 1,450 people.

The company is expected to launch a consultation process shortly.

Declan Breathnach, TD for Louth, said workers had been left in the dark about their future.

"There was a series of rumours doing the rounds in recent months that eBay would seek to close its operation in Dundalk, and unfortunately this rumour has now been confirmed by management at the company," he said.

"It's simply unacceptable that the workers have had to put up with these rumours for months without any clarification being provided by management."

PayPal said it reaffirmed its commitment to Ireland, where it employs more than 2,600 staff in both Dundalk and Dublin.

It has vowed to create a further 400 jobs by 2018.

"Our operations will expand and move into the office space vacated by eBay," a spokesman confirmed.

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