eBay is set to lay off 9 percent of its workforce, that is 1,000 employees, in an effort to minimize expenses and enhance efficiency. This comes despite the e-commerce giant recording increase in customer satisfaction, strong revenue and growth.
Jamie Iannone, eBay’s CEO, said in a corporate blog that the company needs to better organize its teams for speed. He highlighted that changes are needed to better position eBay for long-term, sustainable growth.
“The most significant and toughest of these decisions is to reduce our current workforce by approximately 1,000 roles or an estimated 9 percent of full-time employees. Additionally, we plan to scale back the number of contracts we have within our alternate workforce over the coming months. These are not actions we take lightly, and we recognize the impact they will have on all eBayers. We have to say goodbye to people who have made so many important contributions to the eBay community and culture, and this isn’t easy.”
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eBay Wants to Tackle Expenses, Bring Growth to Business
Iannone believes eBay can do better despite the external pressures, like challenging macroeconomic environment. “While we are making progress against our strategy, our overall headcount and expenses have outpaced the growth of our business. To address this, we’re implementing organizational changes that align and consolidate certain teams to improve the end-to-end experience, and better meet the needs of our customers around the world.”
eBay will inform employees, those whose roles have been eliminated, and enter into a consultation process in areas where required. The chief executive said changes are difficult, but it will make the company stronger.
“In the months ahead, you will see a more focused, agile, and responsive eBay – one that is better positioned to advance our purpose of creating economic opportunity for all.”
eBay and US Tech Industry in Recalibration Mode
In recent weeks, the US tech industry has seen more than 7,000 redundancies. Companies laying off its employees include Amazon, Google, Discord, Duolingo and Unity Software. A report stated that at least 6,505 workers at US-based tech companies have lost their jobs so far in 2024.
Experts say this reflects a broader trend in the tech job market, wherein companies are inclined towards artificial intelligence (AI) and automation for efficiency and innovation – meaning job losses. More layoffs are likely to follow in the near future as companies shift strategies.