eBay is laying off 1000 employees amid growth squeeze

Amid continuous struggles for growth, eBay Inc has revealed plans to realign organisational structure and cut approximately 9% of its current workforce, translating to around 1,000 job roles. The decision, communicated by CEO Jamie Iannone in an internal note to employees, is “driven by the need to address the imbalance between overall headcount and business growth”. Iannone highlighted the company’s commitment to improving the end-to-end customer experience and meeting the evolving needs of its global customer base through these organisational changes.

The tech industry has witnessed a wave of job cuts that began in 2023 and has continued onto this year, as companies face challenges arising from the pandemic’s impact on their strategic focuses. Industry giants like Amazon and Google have also implemented workforce reductions. This move follows eBay’s earlier decision in February 2023 to lay off 500 employees globally, constituting 4% of its workforce at the time.

Jamie Iannone stressed the difficulty of these decisions, stating, “These are not actions that we take lightly. 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.”

In addition to the job cuts, eBay will streamline its contracts within its “alternative workforce” over the coming months. The restructuring is aimed at enhancing the company’s agility and efficiency to better navigate the current challenging economic environment.

The market responded positively to eBay’s announcement, with shares surging over 3.7% in premarket trading following the news. However, industry analysts noted that the company did not provide specific details on anticipated cost savings, restructuring expenses, or the extent of roles and segments affected by these changes. It is speculated that the restructuring might involve cutting middle-management layers to improve overall efficiency.

Read more at thetechportal.com

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