Ebay will lay off 2,400 employees by the end of March ahead of its plan to spin off PayPal into an independent company, Ebay said Wednesday.Unemployment

The estimated 2,400 employees represent about 7 per cent of Ebay’s total workforce across its three businesses, Ebay Marketplaces, PayPal and Ebay Enterprise.

Ebay said it would explore strategic options for Ebay Enterprise, including a sale or initial public offering. Ebay Enterprise serves large retailers in managing e-commerce initiatives.

Ebay said its revenue in the final quarter of 2014 grew by 9 per cent to 4.9 billion dollars. Analysts had expected better sales over the Christmas season. PayPal’s revenue in the quarter grew 18 per cent.

“PayPal had another strong quarter, finishing an excellent year,” the company said. “Ebay, while facing challenges, continues to be a great business and is focused on stabilizing performance and engaging its core customers.”

Plans to separate Ebay and PayPal into independent companies in the second half of 2015 are on track, the company said: “We are confident this is the right strategic path for each business.”

The company said its profit rose 10 per cent in the fourth quarter over the same quarter in 2013 to 936 million dollars. Its revenue for the year was 17.9 billion dollars, an increase of 12 per cent. Net income for the year was 3.5 billion dollars, up 5 per cent.
GNA

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