eBay Announces 9% Workforce Reduction

eBay’s CEO, Jamie Iannone, revealed on Tuesday that the company will be cutting 1,000 full-time positions, which accounts for approximately 9% of its total workforce. In addition, eBay plans to scale back its contracts with its “alternate workforce” in the coming months.

External and Internal Pressures

Iannone acknowledged the challenging macroeconomic environment as an external pressure contributing to the decision. However, he also emphasized that there are factors within the company’s control that need to be addressed.

The CEO stated, “While we are making progress against our strategy, our 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.”

Transitioning to Remote Work

In preparation for the layoffs, Iannone requested that US employees work from home on January 24th to provide a suitable environment for the necessary conversations. He also mentioned that employees would be informed of their job status via Zoom meetings with their respective leaders.

Iannone assured, “We’re committed to treating everyone with respect and empathy through this transition and providing impacted employees with support and resources.”

Tech Industry Layoffs

This move by eBay is part of a series of layoffs affecting the tech industry in early 2024. Google CEO Sundar Pichai recently cautioned employees about upcoming layoffs as the company shifts its focus towards artificial intelligence and other areas. Duolingo and Amazon have also made significant job cuts.

According to data from layoffs.fyi, a total of 63 companies have laid off nearly 11,000 tech employees so far in 2024.