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With the stock market swinging a couple of percentage points up or down every day, connecting price changes to corporate movements is difficult. eBay is beating the average, however, following news that it will lay off 125 people.
Some onlookers will point to the recession we’re likely sitting in as a reason for the cut; others may attribute this to the rash of protests and boycotts angry sellers orchestrated. Corporate spokesman Jose Mallabo made things sound rather less exciting.
“We are still hiring for positions to support those business priorities and have redeployed hundreds of current staff in new roles; but globally 125 people will be leaving our work force of 15,500 – less than half a percentage point,” he told Elinor Mills.
Call the cuts a small reorganization, then, and not a significant event. Although you can also call Mallabo’s math crappy – according to a calculator, 125 is 0.81 percent of the employee total he gave.
Meh. Either way, it appears that eBay’s still in relatively solid shape as John Donohoe prepares to take over for CEO Meg Whitman.
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Comments
eBay's Changes
In Australia, eBay is planning to force all transactions to be completed through PayPal. No other payment forms will be available. If they get away with it there, the policy will spread to the US.
In the US, eBay has thrown digital delivery items off the main auction site and into their classified section which has cut sales of digital items to almost nothing, as few buyers look at eBay classifieds.
They have also changed feedback policies so that sellers will no longer be able to leave negative feedback when buyers fail to live up to their purchase commitments. Many sellers are outraged that they can be hit with feedback that reflects bad selling practices, but buyers will be able to abuse the system and no one will be the wiser.
eBay has also increased fees which has outaged small sellers, and many who have remained have increased prices they charge to cover the fee increases. Sales of items will drop as buyers find fewer and fewer deals available at great prices.
The new President of eBay seems determined to change much of what has made eBay the huge success it is by imposing changes that benefit eBay and alienates buyers and sellers.
Buyers and sellers are customers of eBay as there is no eBay without the synergy that exists between the two.
Sell your eBay stock while you can get value for it as in 2 years, eBay will likely become a memory as sellers pull out and buyers discover that the bargains eBay was famous for are gone.
Can't Feel Sorry
Over the past few years, I have just used ebay ocassionly to recognize my own personal site. Before this time, I was an advid seller.
Since ebay has treated sellers and raised prices, I can't really fell sorry for what is happening. Only hoped they would have worked with sellers more like some of my affiliate sites.
Don't have a nice day FeeBay!!!!
ebay
We spent 7 years building our ebay store and now
getting less and less sales each day ! China bay has taken over
with high ship rates and .99 cent items tossing usa sellers out the door
sad to see we get two boots at the same time high high fees cant leave neg. feedback and no sales.
wake up!!!
thanks ebay
Corporate spokesman Jose
Corporate spokesman Jose Mallabo made things sound rather less exciting.
“We are still hiring for positions to support those business priorities and have redeployed hundreds of current staff in new roles; but globally 125 people will be leaving our work force of 15,500 – less than half a percentage point,” he ......
More eBay spin, perhaps those hundreds of "redeployed staff" are the trolls who wonder around to the various boards and ebay forums spying out "unebaylike" activities with the result of boycotters suddenly being excommunicated.
eBay experiment
As far as I know, this is the first time a major company has managed to offend 99% of their customers all at once.
The sellers, the boycotters, the strikers ... the ones making all the noise are eBay customers. Not share-croppers as eBay seems to feel.
Just to set the record straight, All auction fees are paid by sellers to eBay. That makes the sellers eBay's customers. eBay seems to have lost sight of that.
Think about what would happen if your company offended 99% of your customers, all at once. Apply that thinking to eBay. Watch what happens.
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