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 Thursday, October 09, 2008
eBay announces its largest-ever job cuts
Posted by Chris

logoEbay_x45.jpgThis isn't going to be a traditional blog, but I thought it was important to post this story I snagged from Trade Fax today, as Gavel Chat Nation needs to be in touch with any and all eBay news I am able to dig up:

eBay announced this week it will cut approximately 1,600 jobs, or 10 percent of its work force, in its largest round of dismissals ever. About 1,000 full-time employees will be gone, while eBay will achieve the rest of the cuts by letting temporary and part-time workers go and by leaving open positions unfilled.
Company CEO John Donahoe said the cuts will make eBay “more responsive and nimble,” and give it an opportunity to reinvest in growth areas like its online payments service PayPal and its classified-ads business. The company said the cuts will result in $150 million in annual cost savings.
eBay has struggled to match competition from other areas of e-commerce, with many consumers increasingly using more online retailers like Amazon.com. In the second quarter, eBay’s count of “active users” rose just 1.4 percent.
Already this year, eBay has altered its seller’s fees, search results and feedback system in an effort to attract more users. But the changes have also angered a number of sellers, some of whom have left the site.



10/9/2008 5:03:03 PM (Eastern Daylight Time, UTC-04:00)  #  Comments [3]
10/10/2008 3:52:23 AM (Eastern Daylight Time, UTC-04:00)
I have a good friend who has left eBay because they now require PayPal as a payment method. I think he is crazy for selling over 5000 items on eBay to date without PayPal, but he has left since they told him he must accept PayPal.

The new eBay concepts suck. The new auction listing pages which are already gone, the feedback system making buyers attack sellers by telling lies (Yes lies - eBay requires buyers to click a box before leaving neutral or negative feedback stating that you attempted to contact the seller - Twice in the last month a buyer clicked this button without contacting me first - That is lying, right?) and their new My eBay page is impossible.

Why make changes to something that has worked so well for so long?

I have no clue, but they think change will make good.

I sell a lot of electronics on Amazon.com but otherwise for collectibles - eBay is still king but slipping fast.
10/10/2008 10:12:47 AM (Eastern Daylight Time, UTC-04:00)
Joel - I agree with you 100% - well said!

I seem to remember eBay said in a statemetn not long ago that their goal was to keep the current customers and were not believing they could expand their customer base anymore (I could be off on that one thought.) But it's a recipe for disaster when a business stops trying to grow and only concentrates on stopping the bleeding.
10/13/2008 9:33:56 AM (Eastern Daylight Time, UTC-04:00)
From what I understand eBay isn't forcing people to accept ONLY Paypal, but is forcing the sellers to at least accept it as an option. Is that correct?
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