eBay cuts 125 jobs

Internet auctioneer eBay said today it was cutting 125 jobs in Europe and North America, including 70 positions at the online auctioneer’s headquarters in San Jose, California.

Company spokesman Jose Mallabo said the cuts are part of a reorganisation to streamline operations – not cut costs. The cuts amount to less than 1% of the company’s global head count of 15,500 people.

Mallabo says the cuts in Europe – in Belgium, Spain and Austria – were the result of a centralisation of corporate functions.

“It’s more of a streamlining, particularly on the customer service front,” Mallabo said.

The cuts come as John Donahoe prepares to take the helm from outgoing chief executive Meg Whitman, who will retire on March 31.

Donahoe announced in February a new fee structure meant to encourage more listings as well as changes to eBay’s feedback system, meant to encourage buyers to return to the site.

Mallabo said the reorganisation was a result of putting resources into the priorities Donahoe announced with January’s earnings results: merging the best assets of the Buy It Now function with the auction functions, making the site safer from hacking and growing PayPal.