eBay announced on Tuesday its intention to lay off 9% of the company’s workforce, equivalent to around 1,000 full-time jobs, amidst the ongoing downsizing trend in the tech industry at the beginning of 2024. The stock experienced a more than 3% increase in extended trading.
Jamie Iannone, eBay’s CEO, conveyed this decision to employees in a letter posted 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 justified the job cuts by highlighting that eBay’s “overall headcount and expenses have outpaced the growth of our business.” He explained, “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.”
Tech companies, grappling with concerns about consumer and business spending, have continued to trim positions in January. Amazon, Alphabet, and Unity confirmed cuts this month, while SAP announced on Tuesday its plans for voluntary buyouts or enabling job changes for 8,000 employees as part of a 2024 restructuring program.
Iannone, addressing eBay’s workforce, expressed a desire for employees to work from home on Jan. 24, “to provide some space and privacy for these conversations.” Despite the challenges, he expressed confidence that the changes would make eBay “stronger than ever” and that the company would become “more focused, agile, and responsive” to advance its purpose of creating economic opportunity for all.
Following eBay’s 4% drop in shares in November, linked to lower-than-expected fourth-quarter revenue guidance, Iannone acknowledged softening consumer trends in Q4, with specific challenges in Europe. He attributed these challenges to inflationary pressures and rising interest rates, impacting consumer confidence and discretionary goods demand.
In January, eBay also disclosed its agreement to pay a $3 million criminal penalty as part of a settlement related to a cyberstalking and harassment campaign conducted by a group of former employees.
Thomas Cooper