eBay Lays Off ~1000 Employees, CEO Blames Macroeconomic Headwinds, Expenses Outpace Growth

[valueaddedresource]

Breaking news: eBay is laying off 1,000 employees, about 9% of workforce. CEO Jamie Iannone says headcount and expenses are outpacing growth.

Exact details about specific areas affected have not been disclosed, so not sure what the impact on sellers will be yet but...this does not bode well for the Q4 report in my opinion. 👀

https://www.ebayinc.com/stories/news/ensuring-ebays-long-term-success/

We are on a path to building a stronger eBay for the future — one that is growing, and resilient in the face of any challenge. Over the past three years, we made fundamental changes in our experiences across categories and accelerated the pace of innovation at eBay. In areas where we’re investing, we are seeing consistent increases in customer satisfaction and a meaningful improvement in our growth relative to the market.

Our strategy is the right one, but there is more we can do to ensure our success. We need to better organize our teams for speed — allowing us to be more nimble, bring like-work together, and help us make decisions more quickly. Today, I am sharing news about changes we are implementing to better position eBay for long-term, sustainable growth.

The most significant and toughest of these decisions is to reduce our current workforce by approximately 1,000 roles or an estimated 9% of full-time employees. Additionally, we plan to scale back the number of contracts we have within our alternate workforce over the coming months. These are not actions we take lightly — and we recognize the impact they will have on all eBayers. We have to say goodbye to people who have made so many important contributions to the eBay community and culture, and this isn’t easy.

The Need for Change

Despite facing external pressures, like the challenging macroeconomic environment, we know we can be better with the factors we control. While we are making progress against our strategy, our overall headcount and expenses have outpaced the growth of our business. To address this, we're implementing organizational changes that align and consolidate certain teams to improve the end-to-end experience, and better meet the needs of our customers around the world.

[kensgiftshop]

I read last night where UPS is going to lay off 12,000.

I have a feeling it's going to get a lot worse before things get any better.

[retro_entertainment_collectibles]

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@valueaddedresource wrote:

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@retro_entertainment_collectibles wrote:

I'm sure eBay was none too thrilled to get into the authentication business but that's pressure.  Pressures have mounted against peer to peer commerce sites within mere years of their inception. 

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@retro_entertainment_collectibles  @vintagecraze50 just to be absolutely clear here - I am not talking about whether the general concept of introducing authentication and the overall high value enthusiast buyer focus was good or bad, whether they were forced to do it by outside pressures, whether it will help consumer confidence etc.

I am saying that the way eBay has gone about executing that general concept should be more closely looked at (by sellers, investors, analysts, media and maybe even regulators) and that despite Jamie's attempts to lump everything he's doing into a singular "our strategy" there are in fact multiple business strategies in play here - some of which may or may not be working better than others.

CFO Steve Priest has a whole shtick about eBay's "build, buy, or partner" approach. This is a slide from 2022 investor day - since then, they've added other companies like TCGPlayer, NFT marketplace KnownOrigin, 3PM Shield and Certilogo to help fight counterfeits and provide digital authentication for some items, and MyFitment for car parts to the "buy" column.

If you were to make this slide today, Stoll and Co, GIA, CGC and PSA would go in the "partner" column for their applicable authentication programs and EasyShip would also be a "partner" for EIS.

I think it is absolutely fair and appropriate for stakeholders to look at any or all of this and ask things like:

"What was the decision-making process that led to build vs buy vs partner?" 

"What have been the results of those decisions in terms of costs/risk vs growth, profit, etc.?"

"What are the strengths and weaknesses in these strategies (plural) and what's working/not working?"

"What should be done about what's not working and where do we go from here?"

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Absolutely, there are always things to be learned by "the best laid plans" and I'm sure or at least would assume that much of these discussions among senior management take place.  I understand the requirements of discussions being in a vacuum which of course results in speculation among the user and reporting communities... People run rabid and due to numbers of scale that can be explosive.

How many times do we read, "eBay doesn't care about it's sellers?"

I don't believe that be true in the least anymore than I believe a Congressman or Congresswoman doesn't care about their constituency.  All this stuff is machine like with wave of cause and effect whereby effect can result in folks reacting in worse and more harmful ways than causations.  We're literally living it now in respect to Poly-Ticks.

All that said I do appreciate your professional dialog, commentary and thoughts.  As you might be able to discern from my writing I'm a different bird in the nest.  I'm as comfortable in a bar room, board room or at a dinner full of of legislators, just my life's experience.

I think it would interesting or perhaps even advisable for the company to look towards community and create a few handfuls of external think tanks among critical thinkers.  Groups to put forth questions that are more relational to the website and processes that of course need be skillfully crafted so as sellers don't go off the deep end even if NDA's be signed.  Of course there is risk there too but risk is the foundation of change.

As I'd said in another thread I believe that it is time for eBay to help foster a seller union but perhaps even too late on that.  I can understand why any company especially in open marketplace fane that yet it is that sort of organism that in this case can become the skin in abstract prose of protection over the body and heart of eBay.  Third party sellers have never had any power as a collective in the online eCommerce environment and I have to believe that the majority of sellers out there desire mutually beneficial relationships with stakeholders across the spectrum.

[retro_entertainment_collectibles]

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@kensgiftshop wrote:

I read last night where UPS is going to lay off 12,000.

I have a feeling it's going to get a lot worse before things get any better.

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UPS is a cow and has been for quite a long time.  I know people who work for both UPS and FedEx and to the shipper or receiver both appear quite similar yet really they are not.

Within days we're going to see Amazons Q4 results and I bet they are going to be impressive and in a few weeks Walmarts and others.  I'm going to say Walmarts are going to be impressive.  eCommerce has changed and this is what sellers will not get through their skulls in as far as those areas where third party sellers have control over their finite selling.

It'd be interesting to see the numbers past/present of how Amazon's fulfillment  has impacted the freighting companies.  I know they were or perhaps still are the USPS #1 customer bar none.  Walmart is the other big player on the stage now and the companies own logistics have been the envy of the entire retail sector for ages and they've leveraged it in very big fashion towards their online endeavors.

UPS contract with the Postal Service is also up this year I believe, August or September I believe I read someplace several months back.  That could be an impactor towards these layoffs.  Forward facing press releases seldom tell the full story.

FedEx is seeking drivers all over the country and whilst Amazon has had layoff's that too appears regional matters per se.  Where I live Amazon has bought up small regional shipping/receiving operations and they cant get enough drivers.  It's part in fact of what caused postal service disruptions over the holidays.  Amazon was dropping "Heavies" at main postal offices and in doing so that all has to be revenue loss for the company.  But the volume so great Amazon's own to door fulfillment couldn't handle the volume which is why I predict their Q4 is going to exceed expectations and it also speaks towards where consumers are spending, same of Walmart.

[valueaddedresource]

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@retro_entertainment_collectibles wrote:

I think it would interesting or perhaps even advisable for the company to look towards community and create a few handfuls of external think tanks among critical thinkers.  Groups to put forth questions that are more relational to the website and processes that of course need be skillfully crafted so as sellers don't go off the deep end even if NDA's be signed.  Of course there is risk there too but risk is the foundation of change.

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@retro_entertainment_collectibles not a bad idea but...eBay has been there, done that (or something similar) several times in the past and at the current time.

I know eBay Ads has a "seller advisory group" and there are multiple other currently active groups/ways in which eBay "puts forth questions that are more relational to the website and processes" - many of which do require NDAs to be signed.

And yet...here were are.

It would seem either those handpicked groups are not particularly representative of the broader seller base or their existence is perhaps more about the optics so eBay can say "you asked, we listened" or whatever other nonsense they like to trot out when making decisions or changes that many sellers would vehemently disagree with.

What's that old definition of insanity again?

For my money, it's time for eBay to can the NDAs and consider doing something really wild like practice radical transparency and real, open, good faith engagement with a wide variety of sellers on a wide variety of topics.

Of course, I don't expect that will actually happen any time soon so, I'll stick with sunshine being the best disinfectant and advocating for public discussions of important seller and business impacting topics that should be taking place, whether eBay wants to participate in them or not.

[mam98031]

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@voguevintage wrote:

If expenses are outpacing growth look for them to gut seller protections in the coming months...

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@voguevintage 

That would be unlikely.  Seller Protection isn't that expensive of a program for them.  There would be other places that would come under fire long before Seller Protection.  

[mam98031]

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@vintagecraze50 wrote:

I agree with the monitoring of the activities for the three years. I certainly do NOT want to see anything like that happening again. When companies start to fail in any way there is always a risk of bad behavior.

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Layoffs don't equal "start[ing] to fail".  Ebay has had layoffs in other years.  I remember several years ago they had 1400 employees.  IDK if that was the most they ever had, it is just a number I remember.  And there were layoffs just a couple years ago.

And what about all the other companies that have announced layoffs so far this year?  Does it mean the same thing for them?

[mam98031]

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@bennotbill wrote:

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@voguevintage wrote:

look for them to gut seller protections in the coming months...

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How would anyone notice.

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Because while many of us firmly believe Ebay could do better in this area, there are some protections that are very helpful to sellers.  They may not be protections you have been able to take advantage of, but others have.

[mam98031]

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@kensgiftshop wrote:

I read last night where UPS is going to lay off 12,000.

I have a feeling it's going to get a lot worse before things get any better.

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Yes, lots of companies are sadly having layoffs this year.  Some are UPS [as you stated], Ebay, Etsy, Amazon, Microsoft, Google, Macy's, PayPal and more.

[retro_entertainment_collectibles]

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@valueaddedresource wrote:

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@retro_entertainment_collectibles wrote:

I think it would interesting or perhaps even advisable for the company to look towards community and create a few handfuls of external think tanks among critical thinkers.  Groups to put forth questions that are more relational to the website and processes that of course need be skillfully crafted so as sellers don't go off the deep end even if NDA's be signed.  Of course there is risk there too but risk is the foundation of change.

---

@retro_entertainment_collectibles not a bad idea but...eBay has been there, done that (or something similar) several times in the past and at the current time.

I know eBay Ads has a "seller advisory group" and there are multiple other currently active groups/ways in which eBay "puts forth questions that are more relational to the website and processes" - many of which do require NDAs to be signed.

And yet...here were are.

It would seem either those handpicked groups are not particularly representative of the broader seller base or their existence is perhaps more about the optics so eBay can say "you asked, we listened" or whatever other nonsense they like to trot out when making decisions or changes that many sellers would vehemently disagree with.

What's that old definition of insanity again?

For my money, it's time for eBay to can the NDAs and consider doing something really wild like practice radical transparency and real, open, good faith engagement with a wide variety of sellers on a wide variety of topics.

Of course, I don't expect that will actually happen any time soon so, I'll stick with sunshine being the best disinfectant and advocating for public discussions of important seller and business impacting topics that should be taking place, whether eBay wants to participate in them or not.

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Greetings,

Of course there is community and then community.  In other words I'd suspect most sellers within a grouping are going to seek self-interests and think from that point of view.  Someone like myself for example doesn't have that issue as what I sell is vertical enough short of a few leaves its a beanstalk but I have perspective Top Down and Bottom Up.  There is the reality in my head that eBay needs to do well and solve problems, hear ideas in order to hopefully have better results and operate.

These forums don't necessarily represent that off the larger eBay user public.  There's a few handful's with broad visioning and ideas or perhaps at least willing to gift their time to put em' out there.

I'm not sure complete transparency be a good thing given the numbers of sellers on the platform among rabid unprofessional behaviors.  I quipped in another post about that sort of thing, "Professional Reseller" that couldn't meet minimums required to manage a Walgreen Pharmacy or Little Caesar's Pizzeria more or less an enterprise environment like Walmart.  Complete transparency is stepping through another dimension of which there is no way back, once done well "There we are" at least IMHO.

Now towards external think tanks forthcoming data matters, perhaps not full disclosures.  As the old programming paradigm of, "Garbage input results in garbage output" states albeit the promise of some sectors of AI show promise in altering that.  As a programmer I often get asked of course about my feelings on AI which would be beyond most folks capabilities to process even if I try "Dumb it down" so my reactive response tends be, "If God wanted machines thinking for us we'd be smart (LOL)."

[valueaddedresource]

@retro_entertainment_collectibles one point- I said "radical transparency" not complete. 😉 

Not going to go around and around about the obvious business implications and size/scope of what eBay faces etc. - those are all true just as it is also true that there are many ways that eBay absolutely has the resources and ability to do "better" in a wide variety of ways without compromising or taking on undue burden or risk in regard to all of those obvious size/scope/business considerations.

I stand by my beliefs that eBay has done and continues to do a lot of damage to themselves by the way they choose to engage (or not) with their sellers and I would still generally suggest that if the way you've been doing something for years isn't working out too well (which there are several objective measures to point to, not just grumblings here in this community or from supposedly "unprofessional" youtube resellers), maybe it's time to try something radically different.

[bennotbill]

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@mam98031 wrote:

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Because while many of us firmly believe Ebay could do better in this area, there are some protections that are very helpful to sellers.  They may not be protections you have been able to take advantage of, but others have.

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I assume we are talking about proof of delivery. I've always found that an odd one to come under the "protection" banner.  As a seller I sell something and have proof of delivery.

So sometimes I'm not quite sure where the protection comes in and for who. For instance say proof or not eBay refunded regardless with an INR. How would that pan out for eBay? Is the protection here really for eBay?

[mam98031]

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@bennotbill wrote:

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@mam98031 wrote:

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Because while many of us firmly believe Ebay could do better in this area, there are some protections that are very helpful to sellers.  They may not be protections you have been able to take advantage of, but others have.

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I assume we are talking about proof of delivery. I've always found that an odd one to come under the "protection" banner.  As a seller I sell something and have proof of delivery.

Sometimes I'm not quite sure where the protection comes in and for who. For instance say proof or not eBay refunded regardless with an INR. How would that pan out for eBay? Is the protection here really for eBay?

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You are correct, INR protection for sellers that follow the rules can be very good.  If the tracking shows delivered or attempted to be delivered or buyer refused or some other reason that the buyer chose not to pick up the package, it all equals delivered.  And the seller would be covered if the buyer opened an INR.

And really that is how it should be.  On the rare occasion the buyer gets a seller that is misbehaving and does the scam of shipping something to someone else in their zip code.  The buyer can gather the evidence that it happened, get it is written form from the carrier, file and INR, submit the evidence and if the evidence is clear on what transpired, the buyer can win the INR.  And that is how it should be with a misbehaving seller.  

I've personally had this happen, that is what I did and I won the INR even though the tracking said delivered.

But that is not the only seller protection on Ebay.  While there admittedly are not many others and none as good as the INR protections, there are others that still exist.  Still a world of space for Ebay to improve on Seller Protection, of that there is no doubt.  

Partial refunds for issues with the item returned is a good protection for sellers if used within the rules.  

[downunder-61]

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@vintagecraze50 wrote:

That makes NO SENSE AT ALL. THE AUTHENTICATORS are needed if this focus is to grow.

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While I agree in point, the fact is these ''authenticators'' (across the board) are NOT good at the job and IMHO buyers are being put off, rather than having more trust in eBay for authentic goods purchases.

Where else would an expert authenticator advise ''unable to authenticate''  A total cop out for incompetence.

[bctk5292]

More expenses.

eBay to pay $59m over illegal pill press sales

January 31, 2024

eBay has agreed to pay $59m over claims it sold equipment that can manufacture illegal drugs.

The US Justice Department had alleged that thousands of pill presses and encapsulating machines were sold on the site, including to people who were later convicted of drug-related crimes.

[ittybitnot]

From what I just read, those "macroeconomic headwinds" just turned into something more in line with "tornadoes, hurricanes, and tsunami or two"