eBay’s headquarters in San Jose, California, U.S.
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EBay said Tuesday that it plans to put off 9% of the corporate’s workforce, equal to about 1,000 full-time jobs, because the tech industry continues to downsize to start out 2024. The stock rose greater than 3% in prolonged trading.
Jamie Iannone, eBay’s CEO, told employees in a letter published on a company blog, that the corporate may even “cut back the variety of contracts we have now inside our alternate workforce over the approaching months.”
Iannone said the job cuts are essential because eBay’s “overall headcount and expenses have outpaced the expansion of our business.”
“To handle this, we’re implementing organizational changes that align and consolidate certain teams to enhance the end-to-end experience, and higher meet the needs of our customers all over the world,” Iannone said. “Shortly, we’ll begin notifying those employees whose roles have been eliminated and stepping into a consultation process in areas where required.”
Following hefty job cuts last 12 months, tech firms 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 goals to perform voluntary buyouts or enable job changes for 8,000 employees as a part of a restructuring program for 2024.
Regarding eBay’s cuts, Iannone said he wants employees to work at home on Jan. 24, “to offer some space and privacy for these conversations.”
“These changes are difficult, but I’m confident that by working together we’ll turn out to be stronger than ever,” Iannone said. “Within the months ahead, you will note a more focused, agile, and responsive eBay — one which is healthier positioned to advance our purpose of making economic opportunity for all.”
EBay shares dropped about 4% in November after the corporate 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 this point in Q4, and particular challenges in Europe, suggesting we may even see a more muted seasonal uptick over the vacations.”
He added that “Inflationary pressures and rising rates of interest proceed to weigh on consumer confidence and pressured demand for discretionary goods.”
Earlier in January, eBay said it will pay a $3 million criminal penalty as a part of a settlement related to a cyberstalking and harassment campaign conducted by a gaggle by former employees.
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