- EBay announced plans to lay off 1,000 employees, around 9% of its workforce, as part of a restructuring aimed at streamlining operations and aligning teams.
- The job cuts come as eBay faces slowing growth, increased competition, and shifting industry trends like social commerce. Its stock price has dropped 30% over the past year.
- The eBay layoffs are part of an ongoing trend of workforce reductions across the tech industry, with over 150,000 jobs cut in 2022 amid recession concerns.
EBay is the latest technology company to announce job cuts in 2024 as the industry continues to reduce staffing levels. On Tuesday, the e-commerce giant said it plans to lay off about 9% of its workforce, equating to around 1,000 employees. The move comes as eBay looks to streamline operations and better align teams to improve customer experiences.
Details of the Restructuring Plan
In a letter to employees, EBay CEO Jamie Iannone explained the reasoning behind the restructuring. He said the changes are necessary because eBay’s “overall headcount and expenses have outpaced the growth of our business.”
Specifically, Iannone noted eBay will be scaling back the number of external contractor roles in the coming months. He said the aim is to create a more focused, agile and responsive eBay that is better positioned to advance the company’s purpose.
The job cuts will impact eBay employees globally. Iannone told workers the company would begin notifying affected staff soon and initiate required consultations in certain regions.
Iannone acknowledged the changes will be difficult. But he expressed confidence that by working together, eBay will emerge stronger than ever.
EBay’s Recent Business Performance
The workforce reduction comes after eBay reported softer-than-expected fourth quarter guidance in November 2022. During the earnings call, Iannone cited slowing consumer trends and economic challenges weighing on discretionary spending.
The company has faced increased competition from the likes of Amazon and Shopify. It’s also navigating industry changes like the shift to social commerce.
EBay’s share price has dropped nearly 30% over the past year. The stock rose around 4% in extended trading after news of the restructuring plan.
Ongoing Tech Industry Cuts
The eBay layoffs are the latest in a recent string of workforce reductions across the technology sector. Companies like Amazon, Salesforce, Meta and Google parent Alphabet have all announced major job cuts amid concerns over recession risks.
Faced with rising inflation and interest rates, businesses are looking to curb costs. While tech firms ramped up hiring during the pandemic, many are now reducing headcount as demand softens.
According to Layoffs’, more than 150,000 tech jobs have been cut since the beginning of 2022. The trend is expected to continue as companies brace for potential economic downturns. EBay’s plan to eliminate 9% of staff shows even large players are not immune to the current climate.
