EBay Plans Small Layoff In 'Organizational Fine-Tuning'
15 October 2009 - 4:45AM
Dow Jones News
Ecommerce giant eBay Inc. (EBAY) is preparing to cut a small
number of employees as part of recently announced changes to
streamline and simplify its management structure.
Spokesman John Pluhowski said Wednesday a previously announced
"organizational fine-tuning" effort would result in the loss of
fewer than 60 positions, or less than one half of 1% of the
company's 15,000-strong global workforce.
"The changes will help us improve end-to-end customer
experience, build a global product and technology team and speed up
innovation at eBay," he said.
Pluhowski said the company told employees on Sept. 21 that some
jobs would be cut and management committed to announcing its
decisions within 30 days.
He declined to confirm a blog report claiming cuts would be
announced on Thursday, saying only that eBay would meet its 30-day
schedule. He did not specify which departments would be affected by
the job cuts.
The San Jose, Calif.-based company last October announced plans
to lay off 1,000 employees and several hundred temporary workers,
trimming its global workforce by about 10%.
EBay has been working for more than a year to restructure is
core marketplace business, which has struggled amid the recession
and intensifying competition from Internet retailers such as
Amazon.com Inc. (AMZN).
Wall Street sentiment about eBay has improved in recent months
as the company has started showing signs of improvement in its core
business. The Benchmark Company on Wednesday increased its price
target for eBay to $25 from $21, citing the gradual turnaround of
the company's marketplace unit as the economy rebounds, consumer
demand recovers and comparisons get easier.
Shares in eBay were up 0.1% at $25.24.
-By Scott Morrison, Dow Jones Newswires; 415-765-6118;
scott.morrison@dowjones.com