eBay plans to cut 1,000 jobs, according to employee letter
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CEO Jamie Iannone’s announcement follows tech industry layoffs post-pandemic hiring
eBay, the online retailer, will reduce approximately 1,000 positions, constituting around 9% of its current workforce, according to the company.
“While we are progressing with our strategy, our overall workforce and expenses have surpassed the growth of our business,” stated eBay CEO Jamie Iannone in a letter to employees.
“To address this, we are implementing organizational changes that align and consolidate certain teams to enhance the end-to-end experience and better meet the needs of our customers worldwide.”
These job reductions come in the wake of widespread cutbacks in the US tech industry, which expanded significantly during the pandemic, with major players like Amazon and Google also implementing layoffs.
Furthermore, the company will reduce the number of contracts in its “alternative workforce” over the next few months, Iannone added in the communication.
He mentioned that managers would inform employees of “eliminated” roles, urging all eBay staff to work from home on Wednesday for privacy during these discussions.
“These decisions are not made lightly, and we acknowledge the impact on all eBayers. Saying goodbye to individuals who have significantly contributed to the eBay community and culture is a challenging task.”
In February of the previous year, eBay cut 500 jobs globally, constituting 4% of its workforce, citing a dip in consumer spending amid an e-commerce boom during the pandemic.
Lately, Silicon Valley has witnessed a surge in job reductions, as some of the world’s most well-known tech companies initiate extensive redundancy programs.
In a recent memo, Google CEO Sundar Pichai cautioned employees about potential additional cuts in the coming year, as the company aims to increase investments in artificial intelligence. Earlier in 2023, Google downsized its workforce by 12,000.
Following Meta’s announcement in March to cut 10,000 jobs, reducing its peak overall headcount of 87,000 in 2022, other tech companies have also initiated workforce reductions.
Duolingo recently shed around 10% of its contract workforce, shifting towards a heavier reliance on AI. In January, Amazon made significant job cuts in its streaming platform Twitch and film and television studios division.
Spotify disclosed plans in December to cut 17% of its workforce, equivalent to approximately 1,500 people.
According to data from layoffs.fyi, which monitors job losses in the tech sector, more than 13,000 individuals have already faced layoffs across 72 companies in the current year.
