eBay said it's cutting 125 jobs in Europe and North America in a bid to streamline operations at the online auction site.

Jose Mallabo, an eBay spokesman, told the Associated Press that the work force reduction was not a cost-cutting measure. The cuts amount to less than 1 percent of the 15,500 people who work for the company worldwide, according to Mallabo.

According to the report, eBay said it was making the job cuts in Europe to centralise its corporate functions. However, Mallabo declined to give the AP any information about the layoffs at the company's headquarters.

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

eBay announced the cuts as John Donahoe is set to take over the company from CEO Meg Whitman, who will retire on March 31.

Last month the company announced a new fee structure as well as changes to eBay's feedback system, that angered many sellers.