In the wake of the new Icahn Pact, Ebay is planning on laying off as many as 2,400 employees, or 7% of the company's total workforce.

The American multinational corporation and e-commerce company will be looking to apply its new business unit that assists retailers in managing their online shopping operations.

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In addition, the company will also look into other strategic actions that will help their business such as including a sale or IPO. They look to go forward with this despite the fact that their revenues grew by 12% last year.

Ebay has also announced that it will split up its e-commerce division from its stronger Paypal division later in the year. The agreement was signed with Carl Icahn of Icahn Enterprises. It places Jonathan Cristodoro, a partner of Icahn, on the board of Ebay and was done mostly in preparation for the Paypal division.

In a statement he released via his website, Icahn believes that both Ebay and Paypal will be poised to take advantage of numerous possibilities.

Icahn also suggested several concessions done to facilitate a sale of Paypal when it becomes independent.

The agreement states that Paypal will only have limited powers to block a takeover. Also, they will not be allowed to appoint board members in a staggered fashion.

Ebay may sell the business later on or even hold an initial public offering after they have determined how much it affects the online marketplace.

However, as Paypal is the primary unit of payment of Ebay, last year it has generated $2.2 billion in revenue in the fourth quarter. This represents an 18% gain.

Full-year revenue on the other hand increased 19% to $7.9 billion.

With regards to "trimming the fat" from their company, Spokesperson for Ebay Amanda Miller said that it represented the simplification of the organization and creating a competitive cost structure. 

TagseBay, Icahn Pact, Jobs, PayPal, John Icahn