Despite huge profits, EBAY laying off 2400 people

garnettstyle · January 23, 2015 2:31AM

http://finance.yahoo.com/news/big-profits--big-layoffs--amex--ebay-to-cut-jobs-154221346.html

dennis07 · January 23, 2015 2:40AM

Story link

jfkheat · January 23, 2015 2:41AM

Maybe now they will stop making stupid un-needed changes.
James

Carew29 · January 23, 2015 2:48AM

American Express is laying off 7% ... and they loss the Costco account as of Jan 1st to Capital One

evilpenny · January 23, 2015 2:59AM

Pro's up, yee's down.

charrigan · January 23, 2015 3:04AM

It's a mistake to equate layoffs with a lack of profitability. eBay is doing great. Their "stupid un-needed changes" have all been things that--I have no doubts--*made* them money. The issue is that there is an expectation of *increasing* growth--i.e. that they'll make MORE money in the future than they have in the past. That's super hard - most online venues just aren't growing like that. To keep up with growth expectations, they have to cut costs. Thus, lay-offs.

If anything, let's hope things improve for eBay. The richer they are, the less they'll be financially driven to pinch sellers.

wrestlingcardking · January 23, 2015 3:05AM

<< American Express is laying off 7% ... and they loss the Costco account as of Jan 1st to Capital One >>

Wow, I had no idea.

baz518 · January 23, 2015 3:12AM

Just a smart business decision. These layoffs are just in preparation of eBay splitting into 3 separate companies in the very near future.

ndleo · January 23, 2015 3:13AM

<< 
If anything, let's hope things improve for eBay. The richer they are, the less they'll be financially driven to pinch sellers. >>

I really doubt ebay, or any large company, thinks that way. The pay and bonus structure at these types of companies do not deter executives from making decisions that keep pinching the seller.

charrigan · January 23, 2015 3:14AM

<< 

<< 
If anything, let's hope things improve for eBay. The richer they are, the less they'll be financially driven to pinch sellers. >>

I really doubt ebay, or any large company, thinks that way. The pay and bonus structure at these types of companies do not deter executives from making decisions that keep pinching the seller. >>

Think about it in the reverse: the worse things get financially, the MORE they'll be driven to pinch sellers. That's definitely true.

BaltimoreYankee · January 23, 2015 3:47AM

That's the way of the business world. Comcast had a net income of $14 billion with a B in 2013 and will make more in 2014. I still got the annual rate increase notice with them crying poverty over programming costs. Verizon is installing FIOS in my house tomorrow.

ndleo · January 23, 2015 7:51AM

<< That's the way of the business world. Comcast had a net income of $14 billion with a B in 2013 and will make more in 2014. I still got the annual rate increase notice with them crying poverty over programming costs. Verizon is installing FIOS in my house tomorrow. >>

EXACTLY.

Economic hardship does drive companies to lower costs to get more business, look at JC Penney and other retailers in trouble. The prices got so low at JCP that Macy's had to start discounting as well.

Making lots money does not make a company care more about its customers. The question is can ebay keep sticking it to the sellers, the answer is yes because there is no competition.

cincyredlegs · January 23, 2015 8:54AM

I would comment but don't want to get banned!!!!!!!

BTW, who's ready for spring training?

Mark

TNP777 · January 23, 2015 9:35AM

<< 

<< American Express is laying off 7% ... and they loss the Costco account as of Jan 1st to Capital One >>

Wow, I had no idea. >>

Wait... what???

I need to see what's up with that.

edit: that appears to be true for Canadian Costcos only. However, reports in November say that Costco is weighing the same move for its American stores.

PMKAY · January 23, 2015 9:57AM

<< 

<< 

<< American Express is laying off 7% ... and they loss the Costco account as of Jan 1st to Capital One >>

Wow, I had no idea. >>

Wait... what???

I need to see what's up with that.

edit: that appears to be true for Canadian Costcos only. However, reports in November say that Costco is weighing the same move for its American stores. >>

For years the only credit card you could use at Costco in Canada was American Express. That has not been the case for months now.

MrNearMint · January 23, 2015 3:33PM

I've heard that American express' merchant fees are very unreasonable. This may only be true with smaller businesses but I've heard it for years now.

Stingray · January 24, 2015 3:04AM

<< 

<< American Express is laying off 7% ... and they loss the Costco account as of Jan 1st to Capital One >>

Wow, I had no idea. >>

My Wife just got a Cosco membership a week ago and had to get the American Express card??

Dpeck100 · January 24, 2015 3:23AM

<< It's just financial engineering. Sort of like eBay offerings 1,000 free listings the day after earnings, after not offering any for about a month. Go figure, they exceeded earnings.

It would be an interesting strategy to trade (long or short with options) based on eBay offering free listings / deals close to earnings (top line revenues) vs not offering anything. >>

I looked at the options heading into earnings and the straddle for weekly options was around $3.50. The stock moved about 30 cents more then that so unless you took the right direction bet there was very little money to be made.

Looking at the chart this is a tough stock to trade.

Dpeck100 · January 24, 2015 3:41AM

<< 

<< I looked at the options heading into earnings and the straddle for weekly options was around $3.50. The stock moved about 30 cents more then that so unless you took the right direction bet there was very little money to be made.

Looking at the chart this is a tough stock to trade. >>

In this recent example, I was not thinking (neutral strategy) straddle / strangle / butterfly rather bull call / put spreads or shorting / selling ATM (give or take) puts. >>

I get it. Just a tough stock to trade with no real direction and the options market was fairly accurate in pricing in the move.

Just looking at the current options your concept might work well on non earnings release months as the front month $57 call is $1.13.

Not to large of a hurdle if you can get the direction right.

bishop · January 24, 2015 5:55AM

If I were not retired and if I owned a business, I would hire all you fellows to run it. Man, would I be in a special place

JMDVM · January 25, 2015 5:36AM

<< I've heard that American express' merchant fees are very unreasonable. This may only be true with smaller businesses but I've heard it for years now. >>

True. When I had my business, I took Visa,Mastercard,Discover, no AMEX

JMDVM · January 25, 2015 5:40AM

Laying off workers equals cost cuts hoping to translate to higher earnings. They will pinch as much as they can get away with.

mtcards · January 25, 2015 1:38PM

AMEX merchant costs are excessively higher than regular CC. I can accept them in my business, but do not advertise them and limit it to the one or two accounts I have that prefer to pay that way. As for the laying off of employees....that will continue to happen as long as certain economic factors are in place, at least for the next 2 years or so.

silverinvestor · February 1, 2015 6:30AM

I remember eBay did this once before years ago soon after Donahoe took charge. They laid off the bottom 10% across the board...+

I think its sort of trendy in corporate culture to do. Just part o' the game I guess.

evilpenny · February 1, 2015 11:12AM

Love using Amex, however will never accept it!

TNP777 · March 3, 2015 3:30AM

And now Citi is officially coming to US Costcos - AmEx is out.

Efffective April 1, 2016

Probstein123 · March 3, 2015 8:35AM

thats alot of people

rajah424 · March 3, 2015 11:45AM

Most of them live in my building.

Despite huge profits, EBAY laying off 2400 people

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