eBay announced plans to cut 2,400 positions or about 7% of its workforce

[pierrelebel]

http://www.thestreet.com/story/13018515/1/ebay-stock-gaining-in-after-hours-trading-today-following-...

From eBay's release:  http://investor.ebayinc.com/releasedetail.cfm?ReleaseID=892350

• 2014 Enabled Commerce Volume of $255 Billion, up 24%, Gross Merchandise Volume of $83 Billion and Total Payment Volume of $228 Billion
• 2014 Revenue Growth of 12%, Non-GAAP EPS Growth of 9%

[pierrelebel]

There are so few eBay employees left in Canada, hopefully none of them will be affected this time.

[pierrelebel]

Typical!

After the market closed,  eBay announced the terminations of 2,400 employees and their shares immediately jumped 2.5% rewarding shareholders.

It is not unusual to see shares of American companies jump higher when announcing major layoffs.  The "Street" sees it as fewer expenses leading to more profits.

[rose-dee]

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@pierrelebel wrote:

Typical!

After the market closed,  eBay announced the terminations of 2,400 employees and their shares immediately jumped 2.5% rewarding shareholders.

It is not unusual to see shares of American companies jump higher when announcing major layoffs.  The "Street" sees it as fewer expenses leading to more profits.

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What a sad commentary on modern corporate management and public perception.  Instead of managing for the wisest and best longterm growth, it's just react, react, or provoke a reaction.  It's hard not to be cynical.  (Watch a Frontline documentary called "To Catch a Trader" if you dare.  If you still have any faith in the stock market left, it will cure you). 

[rockp5233]

Hi Rose-dee... When this Frontline doc ''To Catch a Trader'' ?

[pierrelebel]

"What a sad commentary on modern corporate management and public perception."

True.

Unfortunately, this is the modern world we live in.  It is all about short term money.

[cumos55]

eBay keeps growing......There must be a limit  to its size...    or... has it already been reached

Some categories on eBay are very... very full.... maybe too many listings.

eBay's stock has value.... eBay pays no dividends.

But.....there is a 

Stock repurchase program....  $1.2 billion...   and that is about  to 22 million shares...

and then 2,400 positions are gone....

How BIG is Too BIG  for a company like eBay

[bb_cool_stuff]

Some categories on eBay are very...very full....maybe too many listings.

I think you were one of the first, Cumos, to mention 2014 was going to be a "bumpy road."

It was, but really didn't notice til last July when a lot of us hit a wall due to an oversaturated category.

Not kvetching, while sales were down 10% for the year, buying was down 30%.

Not being overly picky while shopping, just staying away from the mainstream product.

Funny, one used to get top dollar for mainstream product, then everyone jumped on the bandwagon.

[rose-dee]

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@rockp5233 wrote:
Hi Rose-dee... When this Frontline doc ''To Catch a Trader'' ?

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It's available on Netflix at the moment, but if you can find Frontline's website I wouldn't be surprised if they are running it as a streaming documentary.  It was made in 2014, so fairly recent.  

If I recall correctly, Frontline is part of the ABC American Broadcasting Corporation)  system so you might be able to get information from the ABC website if you don't have Netflix. 

If even half of what is reported in that documentary is accurate, it's very disconcerting to say the least. 

[pierrelebel]

"How BIG is Too BIG  for a company like eBay"

It depends on your perspective.

eBay's largest competitor is Amazon.  While eBay makes money year after year, Amazon keeps losing money.

Currently, eBay's capitalization at US$66B is only half Amazon's at US$134B

eBay shares trade at a bit less than 3 times book value while Amazon trades at a whooping 13 times book value.

Obviously, investors and speculators expect big things from Amazon in the future and are paying a huge premium for that potential.

Later this year, eBay will divest itself of PayPal.  I would expect eBay's capitalization to be US$40B and PayPal US$26B after the split.

[femmefan1946]

I'd recommend Fixing The Game by Roger L Martin, Dean of the Rotman School of Management at Uof T for a discussion of how companies are run for the pocketbooks of the top level employees rather than for the customer.

[gorilla-scales]

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@pierrelebel wrote:

"How BIG is Too BIG  for a company like eBay"

Later this year, eBay will divest itself of PayPal.  I would expect eBay's capitalization to be US$40B and PayPal US$26B after the split.

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With this pending spin-off, I've often pondered.. could there be a scenario where ebay is eventually bought out by google? it would be quite interesting to see them go head to head with the river.  I could see this as a viable option for ebayinc.. and laughing all the way to the bank while still holding on to their cashcow.

[cumos55]

One word and one word should do IT

Alibaba

[dutchman48]

They are also getting rid of their Enterprise and Magento

http://www.ecommercebytes.com/cab/abn/y15/m01/i22/s04

[2014sportsterguy]

I certainly do not get pleasure seeing people loosing needed income, Except the person who thought defects were smart.....you know where we bend backword to give a refund and get punished......hope that employee lands on skid road.

[cumos55]

At first we hear there will be no separation of Paypal from eBay..

Now there will be a separation.... and Paypal will be given a positive image compared to eBay....

Then we hear of how Enterprise is doing so well.

Now it will get split from the core of eBay.... the core... auctions and Buy It Now.

Is eBay being set up for a take over....

Google had their own auction site many years ago ... and then gave up...

Who needs a solid entry into the North American Market... and then elsewhere..as well....

The next eBay update could be very interesting with everything else happening.....

and then... What?

[reallynicestamps]

I don't pay much attention to announcements, so I had never heard of Enterprise. Apparently it is the side of eBay that was working on attracting large enterprises to the site, to replace us garage sailors.

It was also intended to persuade those retailers to accept Paypal.

Having purchased the company that would do that, John Donohoe is now spinning it off.

So does that mean it will become an independent entity and we garage sailors will return to being the backbone of eBay? Does it mean that Donohoe will decide this site is too embarrassing and leave?

[cumos55]

Donohoe will be leaving eBay once Paypal and eBay have been separated.

A New CEO has already been selected.