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Layoff News Continue to Plague eBay

Last month we reported that eBay was laying off staff at its Portland, Oregon offices.

READ MORE: eBay Layoffs Staff In Portland Oregon

And news reports from Israel indicated that the marketplace was also trimming staff at its offices there.

READ MORE: eBay Israel Apparently Laying Off Dozens of Staff

A small pattern started to emerge with additional rumors of layoffs at other locations and eBay finally acknowledged that it was trimming its 14,100 member workforce by a single digit percentage, which could mean as many as just under 1,300 employees.

California Layoffs

In California, major employers are required to disclose to the state when they plan major employee actions. In its EDD (Employment Development Department) WARN notice to the state, eBay disclosed it was cutting 274 staff at three locations:

  • Brisbane (San Mateo County) – 5
  • San Francisco – 41
  • San Jose (HQ) – 228

The company said in the EDD filing that affected employees had been notified in the final week of June and that “this action is expected to be permanent.”

As the news broke Wednesday on the EDD WARN notices by eBay, later the same afternoon the company released its 2018 Q2 earnings which appeared to underwhelm Wall Street again as the share price dropped in after-hours trading.

READ MORE: eBay Reports 2018 Q2 Earnings with Revenue of $2.6 Billion

eBay Open To The Rescue?

Next week, eBay will hold its annual seller conference eBay Open in Las Vegas.

While financially the company is on solid ground, the fact that others, such as Amazon, appear to be hitting it out of the ballpark during this strong economy, really puts a lot of pressure on eBay to bring excitement to the platform.

READ MORE: eBay Open 2018 Updated Seller Conference Agenda and Speakers

Last year at this time there appeared to be a positive vibe about eBay. But this year, the vibe around the company seems a bit flat.

The transition of the payments platform from PayPal to Adyen is worrying sellers, and many have reservations about eBay’s product-based shopping experience turning the platform into “Amazon-Lite.”

Wall Street doesn’t appear to be very bullish on eBay’s future either and the trickling of news about layoffs just adds more questions to the future of eBay.

The news about layoffs is technically “old news” as the company already had announced a single digit percentage reduction in global staff.

But, the fact that it keeps coming out just doesn’t help the brand in an environment where others in eCommerce are adding jobs, reporting growth, and are in the process of adding a HQ2 with an estimated 50,000 employees somewhere in North America.

It is not just Amazon that is making news with eCommerce growth.

Etsy has found its footing and managed to double its share price in under one year. In comparison, eBay’s share price has been flat.

And just a couple days ago, we pondered if eBay’s sales promotions during Amazon Prime Day helped Amazon more than it did its own platform and sellers.

READ MORE: Why is eBay Promoting Amazon Prime Day?

The company needs a bit of a spark and hopefully, eBay Open 2018 can bring that spark.

As it stands today, there are a lot of sellers, and apparently Wall Street types too, asking questions again about where the company is heading.

What do you think about eBay’s position in the marketplace? Is the coming heading in the right direction and these changes and adjustments are just part of the journey? Head over to our Facebook Discussion Group or use the comments section below.

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