E-commerce giant eBay has revealed its intention to trim approximately 1,000 jobs, constituting an estimated 9 percent of its existing workforce.
eBay’s CEO, Jamie Iannone, shared the news with employees through a letter, citing the need for organizational changes to align teams, consolidate certain functions, and enhance the overall end-to-end customer experience.
In the letter, Jamie Iannone acknowledged the company’s progress in executing its strategic initiatives but noted that the growth of eBay’s overall headcount and expenses had outpaced the expansion of its business. The restructuring aims to streamline operations and better meet the evolving needs of customers across the globe.
The decision to cut jobs at eBay follows a broader trend of workforce adjustments in the U.S. tech industry, which experienced significant hiring during the pandemic. Other tech giants, including Amazon and Google, have also implemented layoffs as part of strategic realignments.
In addition to the job cuts, eBay will reduce the number of contracts within its alternative workforce over the coming months, according to Jamie Iannone’s note to employees. This move indicates a broader effort by the company to optimize its workforce composition and adapt to changing market dynamics.
eBay is targeting revenue of $10.02 billion – $10.08 billion for 2023.
eBay’s Q3 2023 revenue was $2.5 billion, up 5 percent. eBay’s gross merchandise volume (GMV) was $18 billion, up 2 percent. eBay’s net income from continuing operations was $1.3 billion, or $2.46 per diluted share. eBay’s Q3 operating margin decreased to 18.2 percent, compared to 23.9 percent for the same period last year.
This is not the first time eBay has taken measures to cut jobs. Last February, eBay announced plans to lay off 500 employees globally, constituting 4 percent of its workforce. The current workforce reduction aligns with eBay’s efforts to ensure organizational efficiency, control costs, and position the company for sustained growth in the highly competitive e-commerce landscape.
