Wedge Partners Predicts Major Layoffs at eBay
eBay Inc. (NASDAQ:EBAY) has seen a tremendous loss of users due to a fixed-price model. But at the same time, some sellers have never been doing better using the site. Regardless, eBay is losing money to an increasingly competitive growth in online retail stores. And this may cause a decrease in their work force.
Research company Wedge Partners published a report stating that eBay’s sales are deteriorating and the company may have to layoff 10% of their employees. This translates to about 1,500 jobs given eBay’s 15,000 employee count.
eBay is also dealing with lawsuits between Craigslist, Tiffany & Co., and Louis Vuitton. Even though things seem bleak with the online auction retailer, they have pulled through many tumultuous situations before. eBay will persevere because no one has been able to match the strength of their brand when it comes to buying and selling goods for a decent price.