EBay Revenues Slowly Growing, But Employees Fired
EBay presented a report for the 4th quarter, and the results of the report pleased the shareholders. The fact is that the volume of eBay's net profit in the 4th quarter grew by about 10%. Total net profit amounted to 939 million US dollars, which is several tens of millions of dollars higher than in the same period of 2013 (850 million). The total revenue grew by approximately 9%, amounting to 4.921 billion US dollars. A year earlier, this figure was 4.530 billion US dollars.
Analysts predicted such an increase in revenue and revenue, arguing that in the fourth quarter of 2014, revenue should increase to 4.85-4.95 billion US dollars. This increase is due to a 21% increase in online sales.
Mobile payments proved to be especially effective in this regard, with an increase of this factor to 30% in the quarter (27.9 billion for the whole year). The volume of international transactions in the fourth quarter grew by 20%. It is worth noting that a significant event also happened in the life of eBay: it was decided to separate the PayPal payment system from eBay, making it an independent company. They say that it was not without investor Carl Icahn (Carl Icahn), who has a strong influence on the leadership of many IT companies of our time. In particular, he managed to seat his representative in the chair of an eBay board member. After the separation of eBay and PayPal (for which Haykan spoke out earlier), this representative will choose which company to work on (or rather, Haykan will choose for him).
The company is now taking another decisive step (according to management, this step will help make the company more competitive): 2,400 employees will be laid off in the near future, which is about 7% of the total number of employees. Layoffs will affect both eBay and PayPal employees.