Ebay to axe 2,400 jobs in corporate restructuring

Ebay will lay off 2,400 positions – representing about 7% of its total number of jobs – as part of a corporate restructuring, the company announced on Wednesday.

The company’s quarterly investment statement, where the cuts were announced, also says that the company will be exploring strategic options, “including a sale or IPO,” despite growing its revenues by 12% in 2014.

Separately, eBay also announced that it had entered into a standstill agreement with Carl Icahn, currently eBay’s largest active shareholder. This agreement, which places Jonathan Christodoro of Icahn Enterprises on eBay’s board, is partly in preparation for the planned spin-off of PayPal from eBay.

“I believe that, following the spin-off, eBay and PayPal will both be well-positioned to take advantage of multiple opportunities,” Icahn said, in a statement on his website.

John Donahoe, president and CEO of eBay, says the splitting of the two companies is on track for the second half of this year.

Amanda Miller, a spokesperson for eBay, said that the job cuts represented “simplification of the organisation and creating a competitive cost structure” in the run-up to the split.

She said that the cuts included some positions which were not currently filled – so there might not be as many as 2,400 layoffs – but said that the company was not disclosing a more detailed breakdown of the cuts at this time.

Powered by Guardian.co.ukThis article was written by Nicky Woolf in New York, for The Guardian on Wednesday 21st January 2015 23.12 Europe/London

guardian.co.uk © Guardian News and Media Limited 2010


JefferiesAnd the Best Place to Work in the global financial markets 2018 is...

Register for HITC Business News