Business Insider

EBay to Cut 2,400 Jobs, or 7% of Its Workforce, and Spin-off PayPal

Jan 22, 2015  •  Post A Comment

“EBay announced it would cut 2,400 jobs, or about 7% of its total workforce, at the beginning of 2015, as it tries to simplify its structure in preparation for spinning PayPal into a separate business,” reports Business Insider.

According to the article, eBay CEO John Donahoe had the following to say about customer trust and about its problems with Google’s search engine:

 “First, the password reset and SEO changes significantly impacted traffic, which did not recover in the second half as expected. eBay’s loyal customers are back following the reset of our passwords, but our more occasional customers have not returned as quickly as expected in Q4.” (At the end of May, revealed that a big data hack two months prior required all users to change their passwords. Hackers had gained access to a database that contained customers’ names, encrypted passwords, email addresses, physical addresses, phone numbers, and dates of birth, although, luckily, no financial information.)

 “We clawed our way back to where [traffic from Google’s search engine] is more or less where it was before the event, but it’s not yet driving growth and it’s not yet driving the same new buyers.” (eBay took a significant hit in 2014 when Google updated its search algorithm. The update, known as “Panda 4.0,” stripped eBay of 80% of its best search listings, according to Larry Kim, CEO of search marketing company Wordstream. Google routinely changes its search algorithms to weed out results from lower quality or spammy websites, and Wordstream’s Kim says that eBay’s bad ad practices caused its results to get punished. This is huge for eBay, because it relies heavily on search traffic. When you Google a product that you want to buy, eBay wants one of its listings to be on the first page of results. Since Google’s update, eBay results have lost their prime real estate. Donahoe says that eBay has “clawed its way back” to its old standings but that it basically has to create a new product catalog and indexing system that will keep it in Google’s good graces. )”

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