Dive Brief:

• EBay Wednesday announced the elimination of 2,400 jobs in Q1, a 7% cut to its workforce worldwide, as part of an effort to cut costs as it prepares for its PayPal spinoff. The jobs are in the Marketplace, Enterprise, and PayPal units.

• The company also said it may sell or go public with its eBay Enterprise unit, which manages web logistics and develops in-store technology for outside retailers.

• Lastly, the company also announced Wednesday a “standstill agreement” with activist investor Carl Icahn, who launched and won a campaign last year to spin off PayPal. The agreement includes giving Icahn ally Jonathan Christodoro a seat on eBay’s board and a choice of which board to join once PayPal is split off. 

Dive Insight:

Looks like things will be rough for a while for eBay. “This is not business as usual,” CFO Bob Swan said of eBay’s lackluster Q4 results. “It’s going to get worse before it gets better. Our ecosystem has been disrupted.” 

CEO John Donohoe concurred, warning that the upcoming year will be one of “transition” that will entail layoffs and separations, but has said he believes that the spinoff is the best thing for the company.