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eBay’s headquarters in San Jose, California, U.S.
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EBay is planning to lay off 9% of its workforce, which is roughly 1,000 full-time jobs, as the tech industry adapts to the new year. Despite this, the stock rose more than 3% in extended trading.
Jamie Iannone, eBay’s CEO, addressed the news in a letter published on a corporate blog, stating that the company will also “scale back the number of contracts we have within our alternate workforce over the coming months.”
Iannone further explained that the job cuts are necessary because eBay’s “overall headcount and expenses have outpaced the growth of our business.”
He said, “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. Shortly, we will begin notifying those employees whose roles have been eliminated and entering into a consultation process in areas where required.”
After significant job cuts last year, the tech industry continues to roll out more cuts in January. Companies such as Amazon, Alphabet, Unity, and SAP have all confirmed cuts, reflecting the concerns about consumer and business spending.
In addition to sharing the news about the workforce reduction, Iannone expressed his wish to employees to work from home on Jan. 24, ”to provide some space and privacy for these conversations.”
Despite the challenges, Iannone remains confident that eBay will emerge stronger, saying, “These changes are difficult, but I’m confident that by working together we will become stronger than ever. 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.”
In November, eBay shares fell about 4% after the company’s fourth-quarter revenue guidance failed to meet Wall Street estimates. During a call with analysts, Iannone mentioned “observed softening consumer trends to date in Q4, and particular challenges in Europe, suggesting we may see a more muted seasonal uptick over the holidays.”
He added, “Inflationary pressures and rising interest rates continue to weigh on consumer confidence and pressured demand for discretionary goods.”
Earlier in January, eBay said it would pay a $3 million criminal penalty as part of a settlement related to a cyberstalking and harassment campaign conducted by a group by former employees.
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