eBay Shaves 1 Percent of Workforce in Streamlining Plan

Company spokesperson Jose Mallabo said the workforce reduction is part of a reorganization to streamline operations -- not cut costs.

The cuts amount to less than 1 percent of the company's global head count of 15,500 people.

Centralization of Corporate Functions

Mallabo says the cuts in Europe are the result of a centralization of corporate functions. He wouldn't talk about what jobs were affected at headquarters.

"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 March 31.

Merging Its Best Assets

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 reorganization is 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 fraud and growing PayPal.

"In North America, we reorganized the PayPal and eBay service groups, but they weren't impacted in terms of head count," Mallabo said. "We are actually growing that business ; we just realigned it under one organization."