In a program on CNBC, it was reported that due to a possible split between eBay Inc (NASDAQ:EBAY) and Paypal, a massive job cut is on the way. John Quain from the New York Times said that the reports which are suggesting that eBay Inc (NASDAQ:EBAY) is going to cut 10% of its open jobs is not true. He thinks that job cuts from eBay Inc (NASDAQ:EBAY) depends upon how well the company has done during the holiday season. He thinks that the job cut will not be severe and the company will keep on working on major products and projects. A split between eBay Inc (NASDAQ:EBAY) and Paypal was already excepted.
eBay Inc (NASDAQ:EBAY) recently released its new iPad app which has revamped the overall look and feel of the online shopping platform. The company is also investing heavily on its major component of online business. The expert thinks that the core business will not be affected from the job cuts. Quain said that eBay Inc (NASDAQ:EBAY) will have to change its core business model. People love to shop from mobile. They cannot wait for auction time to expire and monotonous shopping ways like old time. eBay Inc (NASDAQ:EBAY) will have to change its auction-oriented business model to more robust, swift and mobile shopping mode.
Quain said that when eBay was launched, there was no trend of online shopping, but the company has done pretty well. He thinks that the split always brings profit for companies but in this case, PayPal is in trouble. eBay Inc (NASDAQ:EBAY) will perform good without PayPal but PayPal will have to face a lot of competitors all alone. Quain said that eBay was not happy with its relationship with PayPal and there is a scarce chance that both companies will work together in future.
Carl Icahn’s Icahn Capital Lp is the largest institutional investor in eBay Inc (NASDAQ:EBAY) with over 30.80 million shares in the company by June 30