eBay Inc. revealed its plan to reduce its full-time workforce by approximately 1,000 jobs, accounting for 9% of its employees. The aim is to strategically position the company for future sustainable growth.
Through an official communication on eBay's website, CEO Jamie Iannone indicated that the growth of the business was outpaced by its overall headcount and expenses. As a result, organizational changes are being implemented to align and consolidate select teams, thereby enhancing the end-to-end customer experience worldwide.
Iannone emphasizes the importance of improved operational efficiency, emphasizing the need to be agile and responsive in decision-making processes. In this pursuit of organizational speed, eBay intends to bring together related work and promote prompt decision-making by reducing the number of contracts with their "alternate workforce" in the upcoming months.
Based in San Jose, California, eBay currently boasts a workforce of 11,600 personnel as of the end of 2022.
Following disappointing quarterly earnings featured in November, which showcased declining margins and weak revenue guidance, eBay's stocks have experienced an 11% decline within the past year. This contrasts with the S&P 500's significant growth of around 21% during the same period.
The ongoing wave of layoffs that began in 2024 has particularly impacted the tech industry, with prominent companies like Amazon, Alphabet, and Riot Games announcing employee reductions. In a similar vein, German software giant SAP has disclosed its plans to either change job roles or offer buyouts to 8,000 employees, constituting 7% of its workforce over the course of the coming year.