eBay Cost Restructuring Results In 2.400 employees Losing Jobs
The American auction site eBay announces that it will remove 2,400 jobs as part of a major reorganization. The workforce will thus reduce by approximately 7 percent. This is the largest reduction ever in the history of eBay, facing competition from competitors such as Amazon.
The reorganization affects all parts of the company, which is working on the separation of payment service PayPal. In addition, now also reviewed options for the item shop helps companies in the field of Internet commerce (eBay Enterprise).
The reorganization decision is surprising as the last quarter sales rose 9 percent to $ 4.9 billion ($ 4.2 billion). Net profit increased by 10 percent, to 936 million dollars.
The company predicted a turnover of 4.35 to $ 4.45 billion in the current quarter though, which is less than industry analysts had expected.
The company went on to say to have an agreement with the activist shareholder Carl Icahn. The billionaire who last year was one of the driving forces behind the separation of PayPal, which should be completed this year. Icahn will have its own representative on the board of eBay.
It’s still unclear how these developments will affect China direct drop shippers. Will the eBay fees increase? Follow blog to stay up to day with eBay developments.