Online payment giant Paypal has reversed its decision to open a global operations centre in the US state of North Carolina after the state recently passed controversial anti-gay legislation preventing local governments from extending civil rights protections to LGBT people.

When the operations centre was announced earlier this year, Paypall proudly boasted that its investment would create over 400 jobs and pump millions into the local economy, but all of that changed this week with the company reversing its decision, and releasing a statement condemning the recent legislative changes.

“The new law perpetuates discrimination and it violates the values and principles that are at the core of PayPal’s mission and culture,” Dan Schulman, PayPayl’s president and chief executive, said. “As a result, PayPal will not move forward with our planned expansion into Charlotte.”

“As a company that is committed to the principle that everyone deserves to live without fear of discrimination simply for being who they are, becoming an employer in North Carolina, where members of our teams will not have equal rights under the law, is simply untenable,”

The controversial state laws were created last month in response to a city based piece of legislation in Charlotte that allowed for transgender citizens being able to use public restrooms that aligned to their gender identity.

Since the state’s override of local laws, North Carolina has been heavily slammed by LGBT activists, big business, and sporting teams and events that have decided to speak out against and boycott the state.

The Washington Post has also reported that North Carolina may also face losing federal funding with five US federal agencies believed to be considering whether they should withhold money from the state.

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