Sunday, September 14, 2008
More Rumblings About eBay Layoffs!
eBay hasn't yet confirmed any layoffs, but I guess I'm not the only one who thinks they are on the way. According to Barrons; "Brian Blair and Ryan Hunter of investment-research firm Wedge Partners noted that eBay's business is "deteriorating," and that the company is preparing to fire as many as 10% of the company's 15,000 person workforce."
The layoff numbers that I am hearing are consistent with 10% of the eBay workforce and most of the speculation, centers around the Marketplace business, and will include International.
In labor law, there is a regulation for employers called the WARN Act, which helps ensure advance notice in cases of qualified plant closings and mass layoffs. Basically requiring the employer to give 60-days notice to employees of a major layoff. One provision makes it possible for eBay to avoid the WARN notice.
WARN is triggered when a covered employer:
"Lays off 500 or more workers (not counting part-time workers) at a single site of employment during a 30-day period; or lays off 50-499 workers (not counting part-time workers), and these layoffs constitute 33% of the employer’s total active workforce (not counting part-time workers) at the single site of employment" (bold is mine)
Since eBay has many locations, even within the San Jose area, and the WARN Act only applies to US jobs, they may be able to avoid requirement of the 60-day notice.
Just my 15%