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July 18, 2024
Business

eBay cuts 1,000 full-time jobs in 9% workforce reduction

In a recent announcement, eBay revealed plans to eliminate approximately 1,000 full-time positions, marking a substantial 9% reduction of its workforce. The move comes as part of the ongoing trend in the tech industry’s downsizing efforts at the start of 2024. eBay’s CEO, Jamie Iannone, conveyed the news of the job cuts to employees through a letter published on the company’s corporate blog. Iannone also disclosed that eBay intends to “scale back the number of contracts we have within our alternate workforce over the coming months.”

eBay cuts 1,000 full-time jobs in 9% workforce reduction

Iannone emphasized the necessity of these layoffs, stating that eBay’s “overall headcount and expenses have outpaced the growth of our business.” To address this challenge, the company is implementing organizational changes aimed at streamlining certain teams to enhance the end-to-end customer experience and meet global customer needs more effectively. The CEO also mentioned that eBay will soon begin notifying affected employees and engage in a consultation process in areas where it’s required. These steps are part of the company’s strategy to navigate the evolving business landscape.

eBay’s decision follows a series of job cuts in the tech sector, including AmazonAlphabet, and Unity, all confirming layoffs this month. SAP recently announced plans for voluntary buyouts and job changes for 8,000 employees as part of its 2024 restructuring program. Iannone expressed his empathy for the impacted employees by allowing them to work from home on January 24 to provide a comfortable environment for conversations related to the job cuts. He remains confident that these changes will ultimately make eBay a stronger, more focused, agile, and responsive company, aligned with its mission to create economic opportunities for all.

eBay has been facing challenges, as evident from a 4% drop in its shares in November following lower-than-expected fourth-quarter revenue guidance. Iannone noted softening consumer trends in Q4 and specific challenges in Europe, which indicated a potentially subdued holiday season. The CEO also cited inflationary pressures and rising interest rates as factors affecting consumer confidence and demand for discretionary goods. Earlier in January, eBay disclosed that it would pay a $3 million criminal penalty as part of a settlement related to a cyberstalking and harassment campaign orchestrated by a group of former employees.

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