EBay to cut 2,400 jobs in 2015 as it spins off PayPal

Within its quarterly earnings statement today, eBay said it would be making major job cuts in order to simplify “organizational structures.”

The company said it would eliminate up to 2,400 employees. It reported quarterly revenue of $4.9 billion and GAAP earnings per share of $0.75. While eBay’s stock closed a little under its opening share price at $53.38, it’s up over 2 percent in after-hours trading.

In December, rumors suggested that the company would be making major job cuts, and these appear to be true. In its quarterly statement, the company says:

“During the first quarter, we plan to reduce our workforce globally by approximately 2,400 positions which represents about 7% of our total workforce across eBay Marketplaces, PayPal, and eBay Enterprise. We will also be exploring strategic options for eBay Enterprise, including a sale or IPO. Enterprise is a strong business and a leading partner for large retailers, managing mission critical components of their e-commerce initiatives. However, it has become clear that it has limited synergies with either business and a separation will allow both to focus exclusively on their core markets, as we create two independent world-class companies.”

Last year the auction site announced it would spin off PayPal into its own company, forcing eBay to refine its business model. In addition to job, cuts the company also launched a $2 billion stock repurchasing program this month.

It’s obvious eBay is hoping to satisfy investors while it figures out the next move for its marketplace products — especially considering CEO John Donahoe called eBay’s fourth quarter performance “disappointing.” To do that, eBay is considering a full or partial sale, or IPO, for eBay Enterprise, Donahoe explained during the earnings call.