The cuts are expected to be localized in the company's marketplace division, the report said, citing unnamed sources. By reducing overhead, the planned layoffs could make eBay a takeover target, the Journal reported.
The spin-off was announced three months ago—just about a year after activist investor Carl Icahn put pressure on the company to split the fast-growing PayPal from eBay, which is facing competition from Amazon and Alibaba.
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PayPal's revenue grew 20 percent year over year in the third quarter to $1.95 billion, while eBay's revenue grew 6 percent.