Internet auctioneer eBay said yesterday it is cutting 125 jobs in Europe and North America, including 70 positions its headquarters in San Jose, California.

Company spokesman Jose Mallabo said the workforce reduction is part of a reorganisation to streamline operations - not cut costs.

The cuts amount to less than 1% of the company's global headcount of 15,500 people.

Mallabo said the cuts in Europe - in Belgium, Spain and Austria - are the result of a centralisation of corporate functions.

He would not comment on which jobs were affected at headquarters.

"It's more of a streamlining, particularly on the customer service front," Mallabo said.

The cuts come as John Donahoe prepares to take the helm from outgoing chief executive Meg Whitman, who will retire on March 31.

Donahoe announced in February a new fee structure meant to encourage more listings as well as changes to eBay's feedback system to attract buyers back to the site. - AP