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EBay lays off 2,400 after earnings tank

EBay lays off 2,400 after earnings tank

In case you didn't know, 2014 was a bad, bad year for the online auction site eBay. The company was hacked more than once, earnings fell and eBay CEO John Donahoe told Business Insider, "quite frankly, we're glad to see [2014] come to an end."

But eBay isn't out of the woods just let. The company has warned that 2015 won't be a cake walk either. With the company sinking fast, eBay will be cutting around 2,400 jobs, or about 7% of its total workforce, to try and stay afloat.

So how on Earth could one of America's top companies be in so much trouble? Donahoe had plenty of reasons which he detailed in his latest earnings call.

"Q4 was disappointing. Significant events in 2014 have disrupted our ecosystem and overwhelmed the progress we were making on a number of fronts, impacting our performance."

What are the significant events? Remember when I told you to change your eBay password?

"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."

There was also Google's implementation of Panda 4.0, which stripped eBay of 80% of its best search listings, due to its bad ad practices.

"We clawed our way back to where SEO traffic 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."

Those are just a few of the issues and Donahoe warns, it's going to get worse before it's going to get better.

Could this be the beginning of the end for eBay? Let me know what you think by posting in the comments below.

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