eBay incurs $26 mn in severance, other costs on restructuring

E-commerce major eBay has said it incurred about $26 million in severance and other costs related to the company's restructuring efforts, which included reducing its global workforce by about 900 people.

 

The US-based company had implemented a global restructuring plan, which included reducing its global workforce by about 600 employees and 300 contractors and other activities like the closing down certain facilities and asset impairments.

 

"In connection with the plan, we have incurred aggregate charges of approximately $ 26 million as of September 30, 2013, related primarily to severance and benefits, including net credits of $ 4 million incurred in the nine months ended September 30, 2013," eBay said in a US Securities and Exchange Commission (SEC) filing yesterday.

 

In the October-December quarter of 2012, eBay had said it implemented a global restructuring plan designed to simplify and streamline its organisation and strengthen the overall competitiveness of its existing businesses, the filing added.

 

The filing further said: "As of September 30, 2013, all restructuring actions under the plan are substantially complete."

 

The company, which announced its third quarter results this month, saw its commerce volume in the quarter grow by 21%  to $ 52 billion year-on-year helped by growth in mobile commerce.

 

Revenues rose 14%  to $ 3.9 billion in the third quarter of 2013 fiscal compared to July-September 2012. It follows January-December as fiscal year. Net profit was up 17 % to $ 837 million from $ 718 million during the quarter under review.