So Ebay has been a jewel of the IT service and Internet world since the late 1990s. But it looks like even this jewel is going bad. Let’s look at Ebay’s struggles: From layoffs to falling stocks.
Ebay, an online retail giant for 20 years, said they will cut around 300 jobs. They also said these jobs will be in the San Francisco and San Jose area and cuts will happen by July 20. That’s tomorrow. But the people losing their jobs got their notices in June. So they’ll have time to financially and emotionally prepare. Ebay offices in San Jose alone loses over 200 jobs.
On the surface, it looked like Ebay is still doing good. Not really. Because they lost around $1 billion in this past year. In fact, in one quarter alone, their profits slipped over 60%. That’s not the only thing that’s slipping. The last time I checked, a few minutes ago, Ebay stocks fell 9% in just this morning alone. That’s almost a one-year low. In fact, their stocks fell 1.34% in the past year. That may not sound like much for a year. However, keep in mind shareholders expected a 4% increase of stocks in 2018. It looks like they were about to get it…until Ebay’s struggles became public.
Some insiders point out it’s not that they’re losing customers, or that they stopped spending. It’s that they’re not getting enough new customers. They also blame…you guessed it…Amazon and Walmart for this decline. Walmart’s upping their online sales. Despite Ebay execs and other leaders working as hard as they can, it’s still tough to compete with Amazon. I’ve noticed that in and around my own computer service shop. They’re not the only ones. Just ask Toys R Us and Radio Shack how hard it is to compete with Amazon and Walmart. Oops, I forgot. They’re not around anymore. Will Ebay overcome their struggles? Or will they be just another victim?