On Tuesday, eBay announced plans to reduce its workforce by 9%, equivalent to around 1,000 full-time positions. This move comes as part of a broader trend in the tech sector to downscale at the beginning of 2024. Following the news, eBay’s shares experienced a more than 3% increase in extended trading.
In a letter to employees shared on a company blog, CEO Jamie Iannone explained that the layoffs are part of a necessary adjustment to align eBay’s staffing and expenditures with its business growth. He mentioned that the company would also be reducing its number of contract workers in the coming months.
“These changes, though challenging, are essential to streamline our organizational structure, bringing together certain teams to enhance the overall customer experience and more effectively serve our global customer base,” Iannone stated. He further indicated that the process of notifying impacted employees and consulting in regions where required would commence soon.
The tech industry has seen a continuation of significant job cuts into January 2024, with notable companies like Amazon, Alphabet, Unity, and SAP announcing reductions or restructuring plans. SAP, for instance, recently revealed a strategy to offer voluntary buyouts or job transitions to 8,000 of its employees.
In light of the upcoming layoffs, Iannone has asked eBay employees to work from home on January 24 to facilitate privacy during these discussions. He expressed confidence in the company’s future, anticipating a more focused and agile eBay capable of fostering economic opportunities for all.
eBay’s shares faced a 4% decline in November after the company’s fourth-quarter revenue forecast fell short of expectations. In a discussion with analysts, Iannone pointed to a slowdown in consumer trends, especially in Europe, and highlighted the impact of inflation and rising interest rates on consumer spending and demand for non-essential items.
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Earlier in January, eBay agreed to pay a $3 million fine as part of a settlement concerning a cyberstalking and harassment case involving former employees.
