Retailers shift their ad spending from TV, radio and print ads to digital ads.
The e-commerce platform provider says the move will let it focus on developing the Magento Enterprise and Community platforms.
EBay Inc. has laid off some workers in its Magento unit. The company declined to say how many employees were let go but that employees in its offices in Los Angeles, Austin, TX, and Kiev, Ukraine, were affected. An eBay spokeswoman says the cuts will allow it to “more deeply focus on the development of its core Magento products, Magento Enterprise Edition and Community Edition.”
In addition to Community and Enterprise editions, Magento also sells Magento Go, a web-hosted e-commerce platform it launched in 2011 to target smaller e-retailers. Fees for Magento Go start at $15 a month and top out at $125 a month; the price depends on the number of products listed on the site. It is not clear what impact the layoffs will have on Go, but the eBay spokeswoman says the changes will not impact its support of the product. “Any changes to our products and services will be directly communicated to our clients at the appropriate time and with their best interest in mind,” she says.
Magento’s Community Edition is free to use, but e-retailers typically pay developers to customize it. Fees for Magento’s Enterprise Edition start at $15,500 per year. EBay acquired Magento in 2011.
Magento is the vendor-provided e-commerce platform most used by e-retailers in Internet Retailer’s Second 500 Guide; 48 e-retailers use it, including lightbulb-seller BulbAmerica.com (No. 604) and office products e-retailer Honest Office Inc. (No. 973). With 17 users, it is the sixth most-used platform by e-retailers in the Top 500 Guide. Larger clients include flash-seller zulily Inc. (No. 77) and publisher Scholastic Inc. (No. 73). In 2013, Top 1000 e-retailers operating on Magento generated more than $1.9 billion in sales, according to Top500Guide.com.