Tuesday, March 25, 2008

eBay Cuts 125 Jobs In North America And Europe, Could This Mean Tough Times Ahead?

eBay logoeBay Inc. said it's cutting 125 jobs in Europe and North America, including 70 positions at the company's San Jose headquarters, according to a news report from the Associate Press.

Jose Mallabo, an eBay spokesman, told the Associated Press that the workforce reduction was not a cost-cutting measure, but part of a reorganization needed to streamline operations. The cuts amount to less than 1% 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 centralize 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 has announced the cuts as John Donahoe is set to take over the company from CEO Meg Whitman, who will retire March 31. The timing of these cuts leaves a lot of speculation that eBay may be facing tough times.

Last month, the company announced a new fee structure and changes to eBay's feedback system, that prompted a sellers strike by many of its top sellers. The strike reportedly forced a 13% drop in new listings.

Here at Geek-News.Net we reported earlier this month that "eBay is facing more business challenges" with many power sellers revolting and many more people moving to sites like Amazon.com.

One thing is for sure, eBay has had a busy few months. First the retirement of their long time CEO, then the pricing and policy changes and more recently the creation of the "eBay Partner Network" dropping Commission Junction and ValueClick as affiliate partners.

No comments:

Post a Comment

All comments will be moderate for content, please be patient as your comment will appear as soon as it has been reviewed.

Thank you