LOS ANGELES - Financial analyst Vern Hofstetter, of Thurston & Howell Financial Group, firmly believes that eBay should consider auctioning off the largest portion of it's workforce that will otherwise be lost in standard job cuts. Hofstetter's recommendation was being heralded as "Bold, forward thinking" by a handful of unemployed analysts shortly after eBay announced on Monday it will cut about 1,600 hundred jobs, or 10 percent of it's workforce in the largest round of cuts to date.
The company said the cuts will result in $150 million in annual cost savings. Hofstetter believes that eBay could almost double that number if each slightly used employee is offered in a short five day auction. Insisting that there's a robust market for certified, pre-owned workers.
"EBay can get much more for a perfectly good Administrative Assistant or even a pair of experienced Data Entry Monitors in an auction environment," said Hofstetter, "As long as the description of each employee is accurate, they include a lot of excellent photos, keep shipping costs reasonable and start the bidding low with no reserve. Buyers will bid those folks up to what they're really worth."
Hofstetter went on to articulate that many smart companies would gladly pick up a qualified used staffer from a trusted and successful organization like Ebay rather than trying to hand pick dozens of fresh recruits from hundreds of mind numbing resumes. "It's like a yard sale in Beverly Hills," said funds manger Don Thurston, "There's bound to be some amazing finds at eBay if you look hard enough. I snatched up my young wife on a Russian auction site and she wasn't even missing any teeth."
John Donahoe, eBay's chief executive did acknowledge that "The weak economy and the effects of the strengthening dollar are hurting eBay's business. Third-quarter revenue will be at the low end of the company's expectations," as reported by The Sydney Morning Herald.
"There's no finer letter of recommendation than one from eBay," said Hofstetter, "I have two staff positions I need to fill myself. Using iPhone's eBay app means I can bid from anywhere. I would grab an eBayer if they went up for auction tomorrow. One company's rejects might be another companies first round of layoffs. Who cares if you can grab 'em on the cheap".
Hofstetter also believes that eBay's announcement on Monday to purchase Bill Me Later will help in the auction of it's higher paid managers, understanding that people using Bill Me Later are willing to buy more-expensive items through the site. "There's some great bargains to be had on the right people," Hofstetter said, "EBay needs to follow their own business model, especially since listing fees are waived and they can bold all their text for free".
[photos are mock-up staff auctions not actual eBay employees or items]
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