eBay, along with other tech giants, has announced that it will be cutting 1,000 employees, representing 9 percent of its full-time workforce.
The Verge report eBay plans to lay off about 1,000 employees, or 9 percent of its full-time staff, as part of a major restructuring. This decision follows similar actions by other technology companies such as Google, Discord, and Twitch. Despite reporting a profit of $1.3 billion last quarter, eBay CEO Jamie Iannone said the company needs to become more agile for long-term sustainable growth. He emphasized the need for faster decision-making.
The company's rapid hiring practices in recent years have been identified as a key issue, with Iannone saying eBay's overall headcount and expenses are outpacing business growth. eBay broke the news of the layoffs to its employees and asked all U.S. employees to work from home to handle the development.
In an internal memo, Iannone emphasized eBay's growth and resilience and pointed to the need for organizational restructuring to increase speed and efficiency in decision-making. Layoffs and reductions in the number of contractors over the coming months are some of these changes.
Affected employees will be notified shortly and managers and team leaders will relay the news directly. Mr. Iannone also expressed confidence that eBay has emerged as a more focused, agile and responsive company, poised to create more economic opportunities for everyone.
Read the full memo from Iannone below.
team,
We're on the path to building a stronger eBay for the future. eBay continues to grow and is resilient in the face of all challenges. Over the past three years, we've made fundamental changes to the experience across categories and accelerated the pace of innovation at eBay. The areas in which we invest have consistently improved customer satisfaction and significantly improved our growth relative to the market.
Our strategy is sound, but there is more we can do to ensure success. We need to organize our teams better to increase speed. This allows us to be more agile, group similar work together, and support faster decision-making. Today we're sharing news about the changes we're making to better position eBay for long-term, sustainable growth.
The most important and difficult of these decisions is to reduce our current workforce by approximately 1,000 positions, or an estimated 9% of our full-time workforce. In addition, we plan to reduce the number of contracted replacement personnel in the coming months. We know these are not actions we take lightly and they affect all eBayers. It's not easy having to say goodbye to people who have made so many important contributions to the eBay community and culture.
the need for change
Despite facing external pressures such as a difficult macroeconomic environment, we know that we can be better through the factors we control. Although we are moving forward with our strategy, our overall headcount and expenses are outpacing our business growth. To address this, we are implementing organizational changes to align and integrate certain teams to improve the end-to-end experience and better meet the needs of our customers around the world.
next step
We will shortly begin notifying employees whose roles have been discontinued and will enter into a consultation process in the necessary areas. The leader will relay the news directly via her Zoom, and the VP or eLT member will send an email once the notification in the group is complete.
To allow space and privacy for these conversations, we are asking all U.S. employees to work from home starting January 24th. We are committed to treating everyone with respect and empathy during this transition and providing support and resources to affected employees.
Looking to the future
These changes are difficult, but we believe that by working together we will emerge stronger than ever. Over the next few months, we will see a more focused, agile, and responsive eBay. This positions us well to advance our purpose of creating economic opportunity for all.
thank you,
jamie
read more Verge here.
Lucas Nolan is a reporter for Breitbart News covering free speech and online censorship issues.
