EBay Inc. reported an increase in its third-quarter earnings and revenue Wednesday, helped by its fast-growing PayPal unit as well as its core marketplaces business, which includes eBay.com.
In a conference call with analysts, CEO John Donahoe answered a question about possible job cuts at PayPal, which has been undergoing a reorganization since David Marcus took helm in April. Marcus has tried to streamline how PayPal creates and delivers new products and make PayPal work more like a nimble startup than a large company.
QUESTION: In the context of the product reorganization you mention, how should we think about the reports of headcount reductions at PayPal?
ANSWER: First of all, let's be clear. PayPal is a very strong franchise, strong business, strong opportunity. While that's true, we are absolutely committed to accelerating the pace of innovation at PayPal. And since David has taken over, he is taking what is in essence of nine different product organizations across PayPal and streamlining and consolidating them into one global product organization. And PayPal employees know about that.
We haven't finally landed on the impact of that. And once we do we will communicate that to the employees and elsewhere. But I think the two things I would say is, one, this is clearly not a case where we're trying to pursue any cost reduction or efficiency goals. This is 100 percent focused on streamlining and simplifying how we create and consistently deliver great products. And that's something we are committed to do and I think you will see real strong evidence PayPal is doing that in the coming weeks and months.
The only thing I might add is that we're working through things at this end and I would say we haven't announced anything yet. Externally. When we get along to where we have something to announce as usual we in fact will.