EBay to axe 2400 jobs; Aussie dollar slides below US80c: Midday Roundup

EBay to axe 2400 jobs; Aussie dollar slides below US80c: Midday Roundup

EBay has revealed it is planning to cut 2,400 jobs, or 7% of its global workforce, despite announcing revenue had increased by 9% to $4.9 billion.

The jobs will go in the first quarter of 2015 and will be spread across the eBay Marketplaces, PayPal, and Enterprise divisions.

“Looking forward to 2015, we will be simplifying organisational structures to focus the businesses and ensure that we are set-up to compete and win,” said eBay in a statement.

The auction platform also said it was considering a range of options for eBay Enterprise, including a sale or initial public offering, ahead of splitting with PayPal later this year. 

“It has become clear that [Enterprise] has limited synergies with either business and a separation will allow both to focus exclusively on their core markets, as we create two independent world class companies,” said eBay.

Aussie dollar slides below US80c

The Australian dollar has fallen below US80 cents for the first time in more than five years.

Just after midday AEDT the local currency was trading at US80.32 cents after falling to US79.95 cents around 8am. 

Business Spectator reports the fresh falls in the Aussie dollar come off the back of a late rally on Wall Street and the heavy publicised quantitative easing action announced by the European Central Bank. 

Local shares jump off Euro plan

Australian shares have enjoyed a strong morning off the back of the overnight announcement of a European stimulus package by the European Central Bank (ECB).

“Last night’s ECB decision is a positive for share market valuations,” said Ric Spooner, chief market analyst at CMC Markets.

“The ECB quantitative easing package was bigger and potentially more open ended than markets had generally been forecasting. Explicitly tying the QE [Quantitative Easing] program to having inflation on a pathway to levels not far below the ECB’s 2% target creates the possibility that they will have to add to it in future as well as extending it beyond September 2016.” 

The S&P/ASX 200 benchmark was up 1.2%, rising 64.4 points to 5484.3 points at 12.05PM AEDT. On Thursday, the Dow Jones closed up 1.48%, rising 259.70 points to 17,814.0 points.


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