EBay to eliminate about 1,000 jobs, or 9% of full-time workforce

EBay
said
Tuesday
that
it
plans
to
lay
off
9%
of
the
company’s
workforce,
equal
to
about
1,000
full-time
jobs,
as
the
tech
industry
continues
to
downsize
to
start
2024.
The
stock
rose
more
than
3%
in
extended
trading.

Jamie
Iannone,
eBay’s
CEO,
told
employees
in
a
letter
published
on
a
corporate

blog,
that
the
company
will
also
“scale
back
the
number
of
contracts
we
have
within
our
alternate
workforce
over
the
coming
months.”

Iannone
said
the
job
cuts
are
necessary
because
eBay’s
“overall
headcount
and
expenses
have
outpaced
the
growth
of
our
business.”

“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,”
Iannone
said.
“Shortly,
we
will
begin
notifying
those
employees
whose
roles
have
been
eliminated
and
entering
into
a
consultation
process
in
areas
where
required.”

Following
hefty
job
cuts
last
year,
tech
companies
have
continued
to
eliminate
positions
in
January
as
concerns
about
consumer
and
business
spending
persist.


Amazon,


Alphabet
and


Unity
have
confirmed
cuts
this
month,
and


SAP

said
on
Tuesday
that
it
aims
to
carry
out
voluntary
buyouts
or
enable
job
changes
for
8,000
employees
as
part
of
a
restructuring
program
for
2024.

Regarding
eBay’s
cuts,
Iannone
said
he
wants
employees
to
work
from
home
on
Jan.
24,
“to
provide
some
space
and
privacy
for
these
conversations.”

“These
changes
are
difficult,
but
I’m
confident
that
by
working
together
we
will
become
stronger
than
ever,”
Iannone
said.
“In
the
months
ahead,
you
will
see
a
more
focused,
agile,
and
responsive
eBay
—
one
that
is
better
positioned
to
advance
our
purpose
of
creating
economic
opportunity
for
all.”

EBay
shares
dropped
about
4%
in
November
after
the
company
provided

fourth-quarter
revenue
guidance
that
trailed
Wall
Street
estimates.
During
a
call
with
analysts,
Iannone
said
that
eBay
had
“observed
softening
consumer
trends
to
date
in
Q4,
and
particular
challenges
in
Europe,
suggesting
we
may
see
a
more
muted
seasonal
uptick
over
the
holidays.”

He
added
that
“Inflationary
pressures
and
rising
interest
rates
continue
to
weigh
on
consumer
confidence
and
pressured
demand
for
discretionary
goods.”

Earlier
in
January,
eBay
said
it
would
pay
a
$3
million
criminal
penalty
as
part
of
a

settlement
related
to
a
cyberstalking
and
harassment
campaign
conducted
by
a
group
by
former
employees.

WATCH:

Jim
Cramer
on
eBay