EBay Fires 125 As Part Of Global Restructuring

March 21, 2008 10:09 a.m. EST

San Jose, CA (AHN) - Internet auction giant eBay Thursday announced it would cut 125 people from the company's 15,500 employees. The move is the latest effort by new CEO John Donahoe to realign the online firm that also owns payment service PayPal and phone service Skype.

An eBay spokesman told the Mercury News the job losses were part of a "streamlining" by the company. The restructuring also means eBay employees are now working in teams, which are led by one person. Customer service employees, once spread across multiple eBay units will now work together, the online auction service explained.

The changes come as newly announced eBay CEO John Donahoe is set to replace veteran chief Meg Whitman, who leaves that position March 31. As the new leader, Donahoe has ruffled the feathers of some eBay customers, such as auction sellers, with changes in fees and other policies.