PayPal is scrapping plans to build an operations center in Charlotte, North Carolina, saying that recent legislation passed in the state undercuts the rights of lesbian, gay, bisexual and transgender people.

"The new law perpetuates discrimination and it violates the values and principles that are at the core of PayPal's mission and culture," PayPal Chief Executive Officer Dan Schulman said in a statement.

PayPal is referring to a law, passed last month, that bars transgender people from bathrooms and locker rooms that don't match the gender on their birth certificates. It also prohibits cities from creating their own anti-discrimination policies. PayPal had announced plans in March to open a new global operations center in Charlotte and employ more than 400 people in skilled jobs.

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