Delivering on its last month’s indications of 2,400 job’s lay-off, eBay Inc (NASDAQ:EBAY), along with PayPal, began the process. The paring down of employees is part of the bigger picture of the termination, of the online auction house and payment processing gateway, unison.
In January, the management had notified of the imminent changes to come – eBay Inc and PayPal would split in 2015 second half.
eBay Inc (NASDAQ:EBAY) Chooses Restructuring
The current jobs that are being culled by the company are of products and services which have not been effective thus far, or do not have a place in the newly formed entities. Thus, product and sales roles at PayPal have now been cut-back, especially in the category of PayPal for small businesses as well as restaurants.
Other service such as the PayPal Here, which was used for mobile-device payments and credit cards, appears to have missed their true deliverable, disappointing many. That apart, a beacon product, which was largely an in-store product, too failed to achieve high sales numbers, despite its September 2013 launch.
As far the auction site itself is concerned, there is no clarity on the actual number of employees being thrust out-of eBay Marketplaces or eBay Enterprise.
Therefore, the newly spun-out PayPal unit is expected to carry agile products and development with CEO Dan Schulman at the head.
Experts observe that the job-cuts does not affect the hot-favorite PayPal’s ‘Braintree’ unit’s, Venmo product. Seen as the future success of PayPal, the peer-to-peer app for payments continues to receive the maximum support remains undisturbed from the current phase of layoffs.
The eCommerce site has been under tremendous pressure from activist shareholders to separate the ecommerce division of the business from the online and app-payment division for some time now. It now appears eBay Inc, did not have much choice, as it begins the painful process of layoffs to create two public trading companies.
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