OREANDA-NEWS. April 06, 2016. The online payments company said Tuesday it will scrap plans to open a new 400-person global operations center in North Carolina, a direct response to a controversial new state law that forces transgender public school and university students to use bathrooms according to their biological gender.

"The new law perpetuates discrimination and it violates the values and principles that are at the core of PayPal's mission and culture," CEO Dan Schulman said Tuesday in a statement. "As a result, PayPal will not move forward with our planned expansion into Charlotte."

PayPal's decision adds to the fallout in North Carolina since the law was passed late last month. The Obama Administration is weighing whether to cut billions of dollars in funding to the state due to the law. Also, PayPal's CEO was among more than 90 business executives who spoke out against the law in a letter sent to Gov. Pat McCrory's Office last week. Several companies have also moved to curb their business with the state, including filmmaker Lionsgate pulling production of a new Hulu show from Charlotte and moving operations to Vancouver, Canada, instead. Additionally, a federal lawsuit was filed last week, claiming that law violates the US Constitution.

PayPal just two weeks ago revealed plans to employ more than 400 people in skilled jobs at the new center.