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EBay's e-commerce market has redesigned its operations to bring the company back to growth in the face of stiff competition from Amazon and a plethora of other online markets. Today is the last chapter of this development. The company announced that it would reorganize its business units and more precisely consolidate its geographic regions into a single team, led by Jay Lee, as Executive Vice President and General Manager of Markets. In this context, TechCrunch understands that the company will lay off a percentage of its global workforce.
According to eBay, the company currently employs 14,100 people, without specifying the exact number of employees. (At least one source on Twitter seems to have a specific number about 400, which we have heard, could be within the real number.)
The company said all geographic areas would be Lee's. These include the Americas, APAC, the United Kingdom, Central Europe and Southern Europe, as well as cross-border trade. Also as part of the restructuring, Scott Cutler, senior vice president of the Americas for the company and, prior to that, the president of StubHub, will leave the company. Lee will also oversee this role in the meantime until the appointment of a new head of the Americas.
Activist investors such as Elliott and Starboard believe the company needs to be reorganized and reorganized to regain growth. (Indeed, in its most recent quarterly results, the company performed well in terms of badysts' forecasts of revenue and earnings per share, but saw that the gross value of goods increased by 1%, which suggests a very soft growth Elliott has published an open letter asking eBay to restructure its main market, refresh management and rethink its other activities such as StubHub and clbadifieds.
Of course, Ebay would say that it does not respond directly to these investor investors by making this change – even if it is one of the changes requested. Instead, in a statement announcing the changes of management (but not the layoffs … we confirmed them ourselves), it is emphasized that it will give him "strategic alignment of global priorities (purchasing growth, conversion, payments, advertising) in the company's key markets; faster decision-making and execution; streamlined resource allocation with greater impact on global priorities; and enhanced and streamlined collaboration with the Core Products and Technologies Organization (CPT), led by CTO Steve Fisher. "
Lee is a veteran of the company. He has been working with eBay since 2002 and ran APAC and then EMEA. There will always be a debate in the business world as to whether veterans, who "knew the company when it was in better shape", are the best to restructure it, or whether new talent and a new pair from the eyes are what is best. (There have been good examples of both.) EBay may not be what it was, but there is still a huge and profitable business, and since e-commerce only works in one direction – it's an opportunity for eBay to come back is still there.
We will update this message as we learn more.
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