eBay will reportedly lay off 9 percent of its workforce, which is about 1,000 of its employees. The firm has stated that it needs to be more ‘nimble.’
eBay Will Lay Off 9 Percent Of Its Workforce
In a move mirroring actions taken by other tech giants like Google, Discord, Twitch, and Unity, eBay has announced significant layoffs this January, avoiding the end-of-year period for these reductions. The company has disclosed plans to reduce its workforce by approximately 1,000 full-time employees, equating to 9 percent of its total staff. Additionally, eBay anticipates further reductions in its contractor workforce in the upcoming months.
This decision comes despite the company’s $1.3 billion profit in the last quarter, a period eBay previously characterized as yielding ‘solid results.’ Today, however, the company acknowledges the imperative for transformation. Jamie Iannone, the President and CEO of eBay, emphasizes the need for the company to evolve, advocating for a ‘more nimble’ approach to decision-making. He asserts that such changes are crucial for eBay to secure ‘long-term, sustainable growth.’
Never mind that in the previous quarter, eBay CFO Steve Priest already stated that he was “extremely proud of our teams for delivering on their quarterly financial commitments, maintaining prudent cost discipline, and executing key deliverables in support of our strategy.”
The Reason for the Layoffs
The e-commerce firm also argues that it hired too fast, an excuse that tech companies have been trotting out for over a year now: “While we are making progress against our strategy, our overall headcount and expenses have outpaced the growth of our business,” writes Iannone today.
eBay has confirmed that the memo, which is available for full viewing, was shared with its employees internally as well. In light of these developments, the company has requested that all of its U.S. employees work remotely tomorrow to reflect on and process these changes.
eBay Found To Have Engaged In Cyberstalking and Harassment against Two of Its Critics
In a related context, it’s noteworthy to mention that Devin Wenig, Iannone’s predecessor, and eBay’s former CEO, received a severance package worth $57 million. This occurred in the wake of a scandal where eBay was found to have engaged in cyberstalking and harassment against two of its critics.
Actions included sending disturbing items such as live insects, a bloody pig mask, and a funeral wreath. As a consequence of these actions, eBay later consented to pay a criminal fine of $3 million.
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