Multiple sources say the payments giant is closing its San Francisco office on 425 Market St. which housed its Xoom business unit. PayPal acquired Xoom, which is focused on online money transfer technology and services, in 2015.

A person familiar with internal happenings at the company said the employees that worked out of that office will work virtually with the ability to work from the company’s headquarters office in San Jose. It is unclear how many employees are affected by the decision.

A PayPal spokesperson told TechCrunch:

     At PayPal, we are continually looking at and evolving how we can work in the most collaborative and efficient ways possible, and we routinely evaluate our global office footprint and spaces to ensure that our company and our employees are best set up for success. The pandemic, in particular, has taught us there are many ways in which we can work effectively while providing our employees with flexibility. PayPal remains fully committed to the Bay Area and to California and we will continue to hire into and invest in our business and people working within the state.

An individual who commented on a post on the topic on the anonymous professional network, Blind, speculated that the reason behind the move could be San Francisco’s Prop C, which levied a tax upon any San Francisco business that earns more than $50 million in gross receipts. Proceeds are to be directed toward housing and services in an attempt to address the city’s challenges with homelessness.

Another fintech, Stripe, exited its San Francisco headquarters in 2020 in favor of South San Francisco.

This is a developing story.