EBay To Cut Jobs and Restructure

Written By Sepideh Saremi | March 20, 2008 | 3 Comments

ebay

Reuters reports today that eBay will be cutting some staff in what a company spokesperson calls a “globalization and centralization effort.” The number to be cut is less than 1% of eBay’s workforce, the spokesperson said, which could be as many as 150 people, as eBay has around 15,500 employees, according to Portfolio.com. With recent news that eBay dumped its partner ValueClick in favor of handling its affiliate network in-house, it looks like eBay is focused on making a lot of improvements in advance of its Q1 earnings call in April.

Despite a seller’s strike over increases in fee listings, Wired reports that eBay’s doing very well, though Don Reisinger at CNET’s News Blog argues that’s because eBay’s got no competition. Reisinger writes that eBay’s decisions over the last few years have made the company forget its core service as an auction site:

eBay is an auction site much like Christies is an auction house. Do you see “Buy it Now” features promoted at the Christies auction? Can people attending the auction make VoIP calls during it? Do they really want buying advice?

eBay has lost its way and the only reason it’s able to enjoy these profits is because there’s no company out there that’s willing to compete on such a grand scale. But why not? eBay is obviously worried about the future and auctions are still a viable way to buy products. If a company came along that finally revolutionized online auctions, the entire landscape of the business could be changed forever and eBay would be long forgotten.

EBay’s CEO Meg Whitman is leaving at the end of this month, and with eBay’s new focus reportedly being on platforms and distributing its content, I think that might be the revolutionary push the company needs to restore its past glory.

3 Responses to “EBay To Cut Jobs and Restructure”

  1. greta says:

    ebay wants to cleanse themselves of their members and eliminate those who don’t fit managements desired profile. but, in that process they have included members who have made them the successful company they once were. i am not opposed to changes, often times changes are good, however, they have missed the mark on how far they are taking those changes while losing integrity along the way. an example (there are many): most recently, the conflicting stories were given for what has been named ‘mystery auction listings’ from the Shopping dot com site (sdc). Initial explanation: it was a glitch in the system, next: limited test that ran its course; then: it was an accident; finally they settled on the test excuse. they really think everyone outside their executive offices are stupid and can’t see thru the veil. what kind of company operates in that kind of vacuum?

    in essence what ebay has done is created opportunities for other companies to emerge who have welcomed buyers and sellers with appreciation and customer service (ebay never had that concept). esty, online auctions, ioffer, overstock to name a few. ebay has spun off their own company to others and will not survive to the level that will be demanded by stockholders and the marketplace.

    eBay has long lost their integrity, in life and business they are basic requirements. we can see the wizard behind the curtain and in this case, his ill intent.

    in the meantime……

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    Evacuate by May 1, 2008!

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