PayPal has dropped plans to put in global operations centre North Carolina, because of the state’s recent LGBT discrimination legislation.

North Carolina passed a law this month banning anti-discrimination protections based on sexual orientation and requiring transgender people in government buildings and public schools to use bathrooms that match the gender on their birth certificates.

PayPal had pledged to bring 400 jobs and invest $3.6 million in the area by the end of 2017.

On the same day that PayPal announced the cancellation, Mississippi’s governor signed legislation allowing individuals and institutions with religious objections to deny services to gay couples.

Major Mississippi-based employers MGM Resorts International, Nissan and Toyota, among others, have strongly objected to the legislation.

PayPal is the first major company to announce it was pulling out investment in a state with LGBT discrimination legislation, saying that “becoming an employer in North Carolina, where members of our teams will not have equal rights under the law, is simply untenable.”

PayPal’s president and chief executive, Dan Schulman, said that if North Carolina repealed the law, “we will reconsider our decision.”

Several other companies are reconsidering their business dealings in North Carolina. The production company Lionsgate, which is filming the musical Dirty Dancing in NC said that it would be “hard pressed to continue our relationship with North Carolina if this regressive law remains on the books.”

Braeburn Pharmaceuticals, which had announced plans for a $20 million expansion in NC, said it was “re-evaluating our options based on the recent, unjust legislation.”