SAN JOSE, Calif.--(BUSINESS WIRE)--
eBay Inc. (NASDAQ: EBAY) today announced a planned fourth quarter pretax
restructuring charge of approximately $15 million related to staff
reductions at the company's PayPal business unit. PayPal today informed
approximately 325 employees, primarily in its product and technology
organizations, of job eliminations. PayPal also is ending contracts with
approximately 120 contractors globally. The reduction results from a
redesign of PayPal's product organization, consolidating nine product
groups into a single, more agile organization. The intent is to simplify
and speed up how products are developed. PayPal expects to continue its
strong global growth momentum and leadership through online merchant
expansion and share of checkout, by driving payments innovation at
point-of-sale retail for large, medium and small businesses, and by
engaging consumers online and offline with payments products and
experiences that offer choice, flexibility, simplicity and security.
PayPal currently has more than 117 million active accounts.
The company said that the restructuring charge is only expected to
impact reported GAAP earnings. It is not expected to affect non-GAAP
results.
Forward-Looking Statements
This press release contains forward-looking statements relating to,
among other things, the future performance of eBay and its consolidated
subsidiaries that are based on the company's current expectations,
forecasts and assumptions and involve risks and uncertainties. Factors
that could cause or contribute to such differences include, but are not
limited to: the timing, impact and execution of the Company's workforce
reduction plan and the extent of the employees and contractors impacted;
the company's need to successfully react to the increasing importance of
mobile payments and mobile commerce and the increasing social aspect of
commerce; the company's need and ability to manage other regulatory, tax
and litigation risks as its services are offered in more jurisdictions
and applicable laws become more restrictive; any changes the company may
make to its product offerings; the competitive, regulatory, credit card
association-related and other risks specific to PayPal and Bill Me
Later, especially as PayPal continues to expand geographically and
introduce new products and as new laws and regulations related to
financial services companies come into effect; the company's ability to
timely upgrade and develop its systems, infrastructure and customer
service capabilities, at reasonable cost; and the company's ability to
maintain site stability and performance on all of its sites while adding
new products and features in a timely fashion.
More information about factors that could affect the company's operating
results is included under the captions "Risk Factors" and "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" in the company's most recent annual report on Form 10-K and
subsequent quarterly reports on Form 10-Q, copies of which may be
obtained by visiting the company's Investor Relations website at http://investors.ebayinc.com
or the SEC's website at www.sec.gov.
Undue reliance should not be placed on the forward-looking statements in
this release, which are based on information available to the company on
the date hereof. eBay assumes no obligation to update such statements.
About eBay Inc.
Founded in 1995 in San Jose, Calif., eBay Inc. (NASDAQ:EBAY) is a global
commerce platform and payments leader connecting millions of buyers and
sellers. We do so through eBay, the world's largest online marketplace,
which allows users to buy and sell in nearly every country on earth;
through PayPal, which enables individuals and businesses to securely,
easily and quickly send and receive digital payments; and through GSI,
which facilitates ecommerce, multichannel retailing and digital
marketing for global enterprises. X.commerce harnesses the developer
community of Magento, an ecommerce platform, by providing technology
solutions and eBay Inc. capabilities to merchants of all sizes,
supporting eBay Inc.'s mission of enabling commerce. We also reach
millions through specialized marketplaces such as StubHub, the world's
largest ticket marketplace, and eBay classifieds sites, which together
have a presence in more than 1,000 cities around the world. For more
information about the company and its global portfolio of online brands,
visit www.ebayinc.com.
Media Relations Contact:
Anuj Nayar
press@ebay.com
Investor
Information Request:
408-376-7493
Company News:
http://www.ebayinc.com/news
Source: eBay Inc.
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