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.
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