EBay is one of the biggest retail store chains in the United States. It has been doing a great business over the years but the company has fall behind Wal-Mart and Amazon in recent times. Moreover, the company is facing a tough time ever since the news came out that the company will be looking forward to spin off PayPal services. The separation between PayPal and EBay is planned in the near future where the payment services company PayPal will stop providing services to its long term business partner EBay.
Hence, the e-commerce giant EBay might shed over 10 percent from its current work force as it prepares separation from its payments unit. According to Wall Street Journal, “eBay could eliminate thousands of jobs early next year as it prepares to spin off its PayPal mobile unit. The cuts, expected to trim 3,000 positions, or 10 percent of eBay‘s total workforce, are said to primarily impact employees in the online auctioneer’s core marketplace division.”
This will be known as the largest reduction or cut off of jobs in the company’s history after 2012. The company cut off around 325 jobs in 2012 due to a major shakeup in PayPal‘s organization. Hence, this rumor could affect up to 1 in 10 employees of the company. The spokeswoman of the company Amanda Miller said “We are focused on running the business and setting eBay and PayPal up for success as independent companies.” Overall, the company denied answering any of such rumors in recent times.
CnetDOTcom reported that the online auction giant is prepared for the split off its PayPal into a separately traded company. Announced in September, the spinoff mark the end of what has been seen as an awkward partnership since eBay acquired PayPal for $1.5 billion in 2002.
There was a deal signed in the past which would have seen EBay boosting the transactions of PayPal by driving auction participants toward the online payment service but the company itself backed off. According to the company, PayPal earns one in every six dollars spent online these days. But the bad relations between both parties has resulted in the dissolution of this partnership.