eBay aims to lay off 1,000 employees

eBay announced plans to lay off about 1,000 employees, approximately 9% of its workforce, due to the current economic conditions. As mentioned in a recent blog post, the e-commerce company also intends to reduce contract positions in the upcoming months.

CEO Jamie Iannone acknowledged that although the company was swift in hiring, the rate of growth did not correspondingly increase, making it difficult to justify the current number of employees.

“Despite facing external pressures, like the challenging macroeconomic environment, we know we can be better with the factors we control. While we are making progress against our strategy, our overall headcount and expenses have outpaced the growth of our business,” Iannone said in a note sent to employees on Tuesday.

“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.”

eBay’s announcement follows several other major companies, including Google, Amazon, Twitch, Audible, Discord, Duolingo, Pixar, and Unity, all of which announced workforce reductions in January 2024.

Despite reporting $2.5 billion in revenue and $1.3 billion in profits in Q3 2023, eBay is anticipating a downturn in Q4, citing decreasing consumer spending levels. The company also boasts a $2.2 billion gain from the sale of its Adevinta equity share to Permira and Blackstone. In addition, eBay expanded its services by acquiring Certilogo, a company that provides digital IDs to apparel, in July. eBay’s Q4 earning reports are expected to be released next month.

eBay has faced several controversies recently, including settling a corporate cyberstalking attack on a U.S.-based couple for $3 million. In September, the Department of Justice also accused the company of selling products that posed environmental and public health risks.