eBay have announced that they are reducing their global workforce by around 10%, affecting approximately 1,000 employees worldwide, as well as several hundred temporary workers. eBay’s CEO John Donahoe said “while never an easy decision to make, these reductions will help improve our operations and strengthen our ability to continue investing in growth.”
There is not yet any detail as to exactly where staff cuts will hit, though eBay UK and eBay Italy have both said that there will be no visible consequences for their site or customer service personnel. These announcements mention reorganising internal-facing teams throughout Europe, “with the aim of ultimately making eBay simpler, safer and more consistent to use”.
The original announcement was contained in a press release concerning eBay’s acquisition of payment service Bill Me Later and two Danish classified ads sites. But somehow, I don’t think this bad news is going to stay buried.
The company also stated it expects to hit the low end of its Q3 2008 revenue guidance; Q3 figures are due to be announced on 15th October. An investor call on today’s announcements is taking place any minute, so more information may emerge from that. We’ll keep you posted.