eBay Axing 2,400 Jobs, Plans Spin Off with PayPal
23 January 2015 13:10 WIB
TEMPO.CO, New York – California-based global online retailer eBay Inc. decides to lay off about 2,400 workers—seven percent of its total workforce—in the first quarter of 2015. The decision is based on the company's plan to restructure and prepare a spin off with e-payment unit PayPal in the second half of this year.
eBay CEO John Donahoe said the e-commerce giant had to resort to downsizing in order "to simplify the organization, reduce complexity, speed decision making and create competitive cost structures," Channel News Asia reported.
A spin off from PayPal, Danahoe said, is the right decision. The reorganization will return eBay to its roots in "marketplaces" division, including auctions and online retail sales that accounted for almost 50 percent of 2014's revenues.
"We are on the right strategic path, and we are acting decisively and aggressively as we position eBay and PayPal for success," he said.
Danahoe said the spin off will not disrupt the company's growth performances. In the fourth quarter of 2014, eBay reported a profit increase of 10 percent to US$936 million. The company booked a revenue total of US$4.9 billion, of which PayPal accounted for 44 percent.
CHANNEL NEWS ASIA | SETIAWAN ADIWIJAYA | RR
