New CEO, new strategy, lots of “What? Us Work?” complacency–analysts think it’s a perfect time for eBay to start firing people. We would only add that the purpose of these firings should just be to kick everyone else at the company in the posterior. eBay’s profit margins are fine. It’s the top line that’s sucks.
Jeetil Patel and Herman Leung of Deutsche Bank Securities wrote in their report issued on Tuesday, “While we had been hearing of a hiring freeze in 4Q, we think that eBay could look to reduce headcount modestly here in early 2008 in an effort to manage profitability. We think this move could help offset part of the business mix issue facing the company with the growth of PayPal and Skype.”
Rohan, senior tech analyst at RBC Capital Markets, issued a note on Tuesday stating that 2008 could be a transitional time period for the company, and writing, “We are unsure if layoffs will be announced or effected.”
Business Insider Emails & Alerts
Site highlights each day to your inbox.