eBay office

eBay India is laying off close to 100 employees from its technology and product development team in Bangalore, reports Economic Times quoting unnamed sources. The layoffs were first reported by Tech In Asia. A spokesperson from the eBay confirmed this to MediaNama adding that the layoffs was part of a ‘regular review of its operational structure’ while declining to comment on the exact number of layoffs. Currently the Bangalore center employs 300 employees, added the report.

“We are reducing our overall technology workforce in Bangalore and shifting work to other global centers around the world.  eBay’s Bangalore Centre will now focus on eBay India-dedicated product and development work,” the spokesperson said in a statement to MediaNama. eBay’s Bangalore center will be now focus only on India-based operations under product and development segment.

Earlier layoffs and PayPal spin-off

This isn’t the first time that eBay has laid off employees in India. Last February, the company sent off 2,400 employees across its offices worldwide which included 350 employees in India. At that time, eBay said that the layoffs were part of massive restructuring plan after it went on the split its payment division PayPal from eBay Marketplaces.

The company announced splitting of PayPal from its core business in October 2014 stating that “keeping eBay and PayPal together beyond 2015 was less advantageous to both its online marketplace and payments business strategically and competitively.” Following the spin-off, eBay then went on to sell its enterprise business to a private equity firm named Permira for a reported $925 million; its enterprise business assists offline retailers in setting up online stores via ecommerce portals.

eBay might be in troubled waters with its India operations

The Indian ecommerce market which reported generated overall sales of $13.31 billion in 2015, is largely dominated by players like Amazon, Snapdeal and Flipkart. Apart from this eBay has witnessed a significant fall in revenue growth. This Mint report points out that the company’s revenue growth in FY15 was 23% with Rs 132 crore in overall revenues, compared to a 33% growth in revenues during FY14 to Rs 107 crore from Rs 81 core a year earlier.

Flipkart on the other hand posted Rs 772.49 crore in revenues in FY15, which is a significant increase from Rs 179 crore in revenues during FY14, the report added. Interestingly it is important to note that eBay set up its ecommerce operations in India in June 2004 by buying a majority stake in Baazee.com; this was years before Amazon, Flipkart or Snapdeal even existed.

In addition, eBay is continuously being scrutinized by customers for its sea of fake products coming in from fake sellers. A list of updated fake sellers can be found here. Some retailers were also caught selling fake products of high-end brands like Canon, Lenovo, and Dell; and in some cases even fake replicas of copyrighted Sarees.