Giant multinational e-commerce company eBay has announced plans to eliminate 1,000 jobs at the company, which constitutes 9% of its workforce.
The announcement comes as part of the company’s effort to align its organizational structure with its business strategy.
In a letter to employees, eBay Chief Executive, Jamie Iannone acknowledged the company’s progress but stated that the growth in the overall headcount and expenses has outpaced business expansion.
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In his words,
“While we are making progress against our strategy, our overall headcount and expenses have outpaced the growth of our business. This announcement underscores the need for eBay to streamline operations to improve customer satisfaction and drive growth in the face of a challenging macroeconomic environment.
“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.”
Regarding the recent job cuts at the company, the CEO 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. 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”, he added.
eBay’s recent job cuts mark the second round of layoffs, which is coming after the company in February last year, announced plans to lay off 500 employees globally, which constituted 4 percent of its total workforce.
The e-commerce giant is keen on making structural changes to enhance agility and decision-making speed, a crucial step to align with the demands of a rapidly changing market.
The job cuts at eBay reflect a broader trend of layoffs in the tech industry which has seen several companies such as Amazon, Google, YouTube, and TikTok, laid off a significant part of their workforce.
The tech sector is currently experiencing a slowdown, which presents a moment of reckoning as companies reevaluate their growth strategies and operational structures. This recalibration is not just a matter of financial prudence but also a testament to the tech industry’s evolution in response to external pressures.
According to data from layoffs. fyi, which tracks job losses in the tech sector, there have already been more than 13,000 people laid off at 72 companies so far this year.