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Wed Dec 17 2014 22:41:14

Will eBay PayPal Breakup Lead to Mass Exodus?

By: Ina Steiner

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Building a company seems a lot more fun than breaking it up, and news that eBay is losing its head of Marketplaces North America (Chris Payne) and its PayPal Chief Strategist (Stan Chudnovsky) may be just the beginning of what could be an exodus.

It's possible that fear, uncertainty, and doubt about the future may also be contributing to low morale among employees who are left behind. (The movie Office Space comes to mind.) There have already been rumors of layoffs ahead.

Aside from the impact of the Breakup, with a capital B, on employees, the question is how it will affect sellers. Will eBay leadership be able to keep the company on track?

On the other hand, sellers hate change, and if everyone at eBay is spending their time tweaking their resumes instead of dreaming up new policies, it's possible sellers will be happy with the result.

As for a replacement for head of Marketplaces North America, what kind of candidate would you look for? How about someone who has worked in retail - ideally someone who has worked with shoppers, suppliers, and vendors in an online environment?



Comments (57) | Permalink

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by: mcposty This user has validated their user name.

Wed Dec 17 23:18:07 2014

They cant keep it on track when.its smooth sailing let alone when some waves hit

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This user has validated their user name. by: permacrisis

Wed Dec 17 23:24:35 2014

Carol Bartz and Patrick Byrne come to mind, but I'd really like someone from Berkshire Hathaway to come in... after they BUY eBay!

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by: JohnGermaine This user has validated their user name.

Thu Dec 18 00:02:39 2014

Since they are planning to dump all the debt onto eBay, then it will probably sink like a rock. I branched out months ago, no eggs in one basket for this kid. I trust no one that much.

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by: Tiffee Jasso This user has validated their user name.

Thu Dec 18 00:27:50 2014

The exodus won't be because Paypal sold to someone else, it will be because annual subscriptions are up for renewal and there is no reason to renew them. Money and time would be best spent somewhere else. Ebay will blame it on Paypal, but it is Ebay who is the bull in the china shop and everything is the shop has been broken.  

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by: JQ This user has validated their user name.

Thu Dec 18 00:39:01 2014

I have been so completely unhappy with Ebay management over the last year that I view every single departure as most likely a  positive change. I would love to see a very deep house cleaning. I simply believe that randomly selected individuals off the street would most likely improve the performance of the company.

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by: cayenna This user has validated their user name.

Thu Dec 18 00:53:22 2014

eBay has not had any leadership and has not been on track. They all need the boot and we need a fresh start with someone that has actual experience as a 'GOOD' leader in retail. If they can't provide that then it can sink. What good is it if there's no visibility and nothing improves... My guess is it will sink since it has gone down this far and taken all it can from us sellers at our expense. We have been financially stripped and raped. I would not mind a lawsuit to compensate all of us sellers that have been beaten and left for dead.

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by: comet This user has validated their user name.

Thu Dec 18 01:11:31 2014

I agree completely with @CAYENNA---ebay is off the rails and has been for quite some time now.

The complete and utter arrogance of their practices shows us that they simply do not CARE if they drive off sellers--the SAME sellers who USED to BUY on the site.  OF course there were other buyers;  but without SELLERS and a diverse marketplace there will be NO BUYERS attracted to the site.  There are NOT hundreds of thousands of seller-wanna-bes waiting "In the wings"  just off stage;  Hoping to get a "spot"  when the seller in front of them; broken and defeated BY ebay-leaves;  that is NOT how it works but somehow ebay cannot SEE this.

These Soviet-era policies didn't work really well in Russia and they certainly are NOT working for the rest of the world.  

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This user has validated their user name. by: Ming the Merciless

Thu Dec 18 01:25:26 2014

Clean house!

Wenig, Burke, the entire "seller protection" team, Griff, and all the rest of them who transformed ebafia from a thriving marketplace into a living hell when they let go of their successful past.

Dumping employees and transferring what will be crippling debt are right out     of the Bain and Icahn playbooks.

At this point I don't think it makes much difference who they bring. Clearly a good grasp of e commerce is unnecessary as the current crew has proven so well. MBA credentials seem to impress Pierre so I expect they will hire more of the same while sellers continue to leave by the thousands.

Ebay is beyond fixing as is.

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This user has validated their user name. by: Marie

Thu Dec 18 02:46:25 2014

For a long time many posters have said that Ebay needs to split off PP.  Many have said both PP and Ebay would be better off.  Now that it is scheduled to happen some of those same posters are yet again spouting of another reason for Ebay to be in financial trouble and/or on their way out.  Neither of which is supported by their financial statements.

I guess time will tell.  Last I read the IPO for PP was suppose to be at the beginning of the summer.  

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by: Terri This user has validated their user name.

Thu Dec 18 05:24:16 2014

The first person that should go is Uncle Grief (Griff)!

I had a run in with him on his facebook page about all ebays changes a couple years back.

That wus couldn't take the heat and then blocked me from his facebook.

I can't stand that arrogant POS!


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by: marty This user has validated their user name.

Thu Dec 18 07:19:23 2014

"Marie
     
Thu Dec 18 02:46:25 2014
For a long time many posters have said that Ebay needs to split off PP.  Many have said both PP and Ebay would be better off.  Now that it is scheduled to happen some of those same posters are yet again spouting of another reason for"...the split are generally good for the shareholders not necessarily for the companies themselves. ..I read the posts regularly but don't recollect seeing any 'spouting' ... I guess yours is the first one

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This user has validated their user name. by: Anonymous Annie

Thu Dec 18 07:56:53 2014

Splitting PP from eBay is a good thing.

IMHO, PP revenues have been keeping eBay afloat and making the company (appear to be) profitable.

Minus PP, the eBay execs and management will (hopefully) find themselves in a sink-or-swim situation where they will be forced to give up many of their failed projects and policies.

Or, perhaps eBay's future will be analogous to that of the alcoholic who refuses to admit there's a problem until they hit rock-bottom, waking up in a gutter or drunk-tank at the local jail. --- Only then, when things are at their very worst, will they admit the truth and begin the process of changing and improving.

Splitting-off PP is not a magic bullet cure, but I think it's a start. It could be something that makes eBay execs (and investors) wake up to the fact that abandoning their roots (and the once-loyal base of rank-and-file sellers) has been a major mistake.

I don't kid myself, though. The execs still remain arrogant and emotionally wed to their ideas, policies and pet-projects (no matter how inane they are proven to be) and are unlikely to willingly abandon them.

eBay didn't become the horrible thing that it is overnight... and any changes for the good won't happen overnight either. It will be a slow and tedious process.

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by: ajeweler This user has validated their user name.

Thu Dec 18 08:20:38 2014

will the break creak utter chaos
YES ebay worth 70 billion after the split annalists predict low teens , bringing in management that has the "divide and concur " attitude will be the end of e bay us, now with all the incentives going to china, I believe alibi will do a hostile takeover new name will ebaba , I am with Ming on this one, the damage is done the reviews, and blogs everywhere are completely  cluttered with both unhappy buyers and sellers, the best I can see is that ebay will soon get rid of it's resolution team, hence giving these false guarantees over to paypal for the newest 6 month rental program, as we know the ho will be running paypal as ceo. we know what will happen, now a matter of when

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This user has validated their user name. by: Rexford

Thu Dec 18 08:34:09 2014

My question is, how will they recruit the top talent they need when A) candidates already know of the impending layoffs of thousands and B) candidates, like sellers, feel that eBay will likely be sold.   Better pony up a hefty amount of stock because this is the only way they will attract a star candidate.

Of course JD probably already has a private equity company lined up  for a buy, a house cleaning, and a sale.

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by: ebay refugee camp This user has validated their user name.

Thu Dec 18 09:43:44 2014

They are running, blood is in the water. This has all been engineered by John Donahoe and Marc Andreesen it all has o do with their personal wealth and the stock market.
Their money will, be in Paypal.
Things have been going downhill for awhile now but in August a dramatic downturn took place.
The security breach and the new defect rate and other crap was a blow that was  

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by: ebay refugee camp This user has validated their user name.

Thu Dec 18 09:48:03 2014

I will finish I hit enter or something and it posted.
August was the final blow that is taking ebay down, securty breach, the new defect rate and policies and the outages all along with silence from a CEO that was in a closet counting up his future fortunes as he sold his stock.
I think ebay will still be here under a new owner and lessons learned will hopefully change for the better, some optimism keeps me going.

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by: Eric Saeger This user has validated their user name.

Thu Dec 18 10:48:22 2014

The blind robotic corporatism needs to stop immediately.  Mutual feedback needs to be reinstated. One of the fun aspects of eBay's early days was how you could get into a flame war with some dingbat newbie buyer as easily as you could find a cheap SCSI drive.  

The thing that absolutely, madly sucks about Donohoe and his team of feebs is that they have no idea about their audience.  I'd like to see the place run by a gonzo comedian, myself.  Doug Stanhope comes to mind.  

I mean, does anyone NOT think they could roll back the new policies of the last 4-5 years and they could trim payroll by half?  My God, what an overstaffed, full-of-itself mess eBay is.  It's like they're determined to be the next AOL.

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by: dr shock This user has validated their user name.

Thu Dec 18 11:32:12 2014

Donahoe is crazy like a fox.
I believe he purposely sent eBay on a downward spiral so a private equity firm made up of his Bain buddies can come in and buy eBay on the cheap.
His payoff will come after eBay is sold. Like the other Bain sociopaths he only cares about how much he profits. The millions of eBay sellers he hurt doesn't matter a bit.

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This user has validated their user name. by: Ric

Thu Dec 18 12:01:30 2014

eBay is going to fail after the split, and PayPal is likely going to struggle once it is no longer tied to eBay.

No executive in their right mind wants to be part of - or associated with eBay when the unsinkable marketplace does just that.

The gravy train as far as excessive compensation at eBay is about to run out of gravy, intelligent executives will seek other employment while they can still obtain a bloated compensation package from an unsuspecting company.

Better to jump ship now with your reputation in tact than to wait until after the split and your reputation is stained by the impending marketplace collapse.

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This user has validated their user name. by: iheartjacksparrow

Thu Dec 18 12:20:11 2014

It's amazing that Chris didn't depart for "family issues." I guess JD figured that excuse has become laughable.

And when I read the title, I thought the question was concerning an exodus by sellers from using PayPal. I no longer use PayPal, and wonder how many others have also dumped them since the 180-day SNAD claims policy kicked in. Hopefully, a lot.

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