eBay has revealed plans to reduce its workforce by 9 per cent, which is roughly 1,000 full-time employees. This decision comes as part of a broader trend of downsizing within the tech industry as we enter 2024. Despite the news, eBay’s stock experienced a 3 per cent increase in extended trading.
eBay’s CEO, Jamie Iannone, communicated the news to employees via a letter on the company’s blog, according to a report by NBC News. He explained that the layoffs were a necessary measure due to the company’s expenses and overall headcount outpacing business growth. He also mentioned plans to decrease the number of contracts within their alternate workforce in the coming months.
Iannone outlined that the company would be implementing organisational changes to consolidate certain teams, aiming to enhance the end-to-end experience and better cater to their global customer base. Employees whose roles have been eliminated will be notified shortly, and a consultation process will be initiated where required.
This move follows a trend of job cuts in the tech industry, with companies like Amazon, Alphabet, and Unity also confirming layoffs this month. SAP also announced a restructuring program for 2024, aiming to offer voluntary buyouts or job changes to 8,000 employees.
On the day of the announcement, Iannone requested employees to work from home to provide space and privacy for the ensuing discussions. He acknowledged the difficulty of these changes but expressed confidence in the company’s resilience and future growth.
In the coming months, Iannone anticipates a more focused, agile, and responsive eBay that is better positioned to fulfill its mission of creating economic opportunities for all.
eBay’s shares saw a 4 per cent drop in November following a fourth-quarter revenue guidance that fell short of Wall Street estimates. Iannone noted softening consumer trends in Q4, particularly in Europe, and predicted a more muted seasonal uptick over the holidays. He also highlighted the impact of inflationary pressures and rising interest rates on consumer confidence and demand for discretionary goods.
Earlier this month, eBay agreed to pay a $3 million penalty as part of a settlement related to a cyberstalking and harassment campaign conducted by a group of former employees.
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