eBay will lay off 2,400 employees, which is 7% of its workforce, the company revealed on Wednesday. The company is splitting its Marketplaces and Payments units into two separate companies later this year.
After an abysmal quarter in terms of GMV growth, eBay Marketplaces will bear more of the brunt of the layoffs, according to eBay’s Chief Executive Officer during a post-earnings conference call. Bob Swan said the reasons for the layoffs differed by business, with Devin Wenig aligning Marketplaces’ cost structure to be more focused, and Dan Schulman seeing a need to accelerate the rate of innovation at PayPal. The layoffs will be a “little bit” higher on the Marketplaces side and a “little bit” lower on the PayPal side.
In its press release on Wednesday, eBay wrote:
Looking forward to 2015, we will be simplifying organizational structures to focus the businesses and ensure that we are set-up to compete and win. During the first quarter, we plan to reduce our workforce globally by approximately 2,400 positions which a represents about 7% of our total workforce across eBay Marketplaces, PayPal, and eBay Enterprise.
Comment on the EcommerceBytes Blog.