Devin Wenig steps down after serving as CEO of eBay for five years.
On Wednesday, shares of eBay were hit after the company announced that CEO Devin Wenig is stepping down. The company’s stock fell nearly 2% after the announcement. Here is an overview of the leadership transition and what to expect from eBay going forward.
Details on the leadership change.
Devin Wenig became CEO of eBay in 2014 and led the company through several transitions, including a spin-off from PayPal. CFO Scott Schenkel will step in as interim CEO while the board looks for a replacement.
Chairman Thomas Tierney released a statement praising Wenig for acting as “a tireless advocate for driving improvement in the business.” But Tierney concluded by saying that both Wenig and the board agree that it’s time for the company to move forward with new leadership.
Wenig also addressed his resignation over Twitter, saying that it’s become clear that he and the board are not on the same page. Wenig added, “It has been an incredible privilege to lead one of the world’s great businesses for the past eight years.”
The company also announced it will continue an operating review of its asset portfolio with the assistance of Goldman Sachs. The company is reportedly considering the sale of its StubHub ticket exchange and eBay Classified Group.
What’s next for the company?
eBay was once considered a leader in the e-commerce market but the company has struggled in recent years. The company has dealt with increased competition from businesses like Shopify, Amazon, and Walmart.
eBay has 182 million global active subscribers but the volume of goods sold on its platform has continued to decline over the years. This caused eBay’s shares to fall sharply toward the end of 2018.
Since then, eBay has shifted its focus and found new ways to improve the customer experience on its platform. eBay implemented a new payment platform and a promoted listings platform. These efforts have definitely paid off and the stock is up 38% year to date.
During the announcement, Tierney stated that the company plans to “focus on our strategic plan and product initiatives, while also ensuring a great customer experience and a smooth transition.”