Dive Brief:
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EBay is consolidating regionally-focused groups within its organization into a single global leadership team reporting to Jay Lee, senior vice president, general manager of markets, according to a company press release.
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The change will result in layoffs affecting an undisclosed percentage of the global workforce of 14,100, according to TechCrunch. Following the move, the new structure will encompass teams responsible for the Americas, Asia-Pacific, U.K., Central and Southern Europe, and Cross-Border Trade.
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A eBay spokesperson told Retail Dive via email, “As a result of this marketplace evolution, along with other actions to deliver on our goals, teams across the company are adapting to ensure maximum focus on eBay’s global priorities. We are adding and removing positions as appropriate across organizations.”
Dive Insight:
After eBay posted its fourth quarter and full year 2018 earnings last month, it seemed like changes were in store. CEO Devin Wenig suggested the company would stick with some efforts it launched over the last year, while abandoning others. Wenig even spoke during the earnings call of "resetting marketing," and this structural change certainly seems to be a move in that direction.
The company continues to face a great deal of external competitive pressure from the likes of Amazon, Poshmark and other online marketplaces. Internal pressure is also mounting from activist investor Elliott Management, which wants to see eBay spin off businesses like Stubhub, much in the same way it once spun off PayPal.
Amid these pressures, the company continues to grow revenue. It reported a 6% year-over-year revenue increase for the fourth quarter last year, and an 8% increase for the full year. It also has tried to broaden its appeal among consumers and sellers through a number of initiatives, such as its decision last year to begin accepting Apple Pay and to help support its sellers with financing through Square. Another notable move was an augmented reality feature to help customers find the right shipping option.
It remains to be seen how extensively eBay could shake up its operations and strategic efforts, but this move isn’t likely to be the last.
