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eBay Layoff: 9% workforce slashed off as company eyes cuts after Meta, Google and Amazon
eBay announced that it will lay off around 1,000 employees, or about 9% of its full-time workforce.
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CEO Jamie Iannone announce eBay is set to lay off 1000 members of its staff
eBay, an e-commerce platform, announced that it will lay off around 1,000 employees, or about 9% of its full-time workforce. The corporation also intends to cut the number of contractors it employs in the coming months. Despite posting a profit of $1.3 billion in the last quarter, eBay believes that reform is required to maintain its long-term prosperity.
eBay CEO says expenses has outpaced the growth
eBay's CEO said in its letter to the employees, "While we are making progress against our strategy, our overall headcount and expenses have outpaced the growth of our business. To address this, we’re implementing organizational changes that align and consolidate certain teams to improve the end-to-end experience, and better meet the needs of our customers around the world."
Despite making a profit of 1.3 billion dollars in the previous quarter, eBay announced the layoffs, describing it as "another quarter of solid results." Last February, eBay laid off 500 people worldwide, accounting for 4% of its overall workforce.
According to Iannone, those affected would be notified 'shortly,' with team leaders expressing the decision in a one-on-one meeting over Zoom. In addition, US-based employees have been directed to work from home on January 24 to provide some space and privacy for these conversations.' The exiting staff will also be offered ‘support and resources,’ the President and CEO said. 
The goal is to build a more agile and efficient company capable of responding swiftly to market needs and making timely decisions. By coordinating and condensing key teams, eBay hopes to better satisfy the demands of its customers around the world. eBay's decision to lay off employees and reduce the number of contractors stems from the company's goal to better its organizational structure and increase its capacity to adapt quickly to market changes.
Major companies lay off employees
Excessive recruiting is a major issue contributing to workforce reductions in the technology industry. Following the pandemic, many businesses significantly expanded their workforces. Nonetheless, by January 2024, a wave of significant layoffs occurred as businesses chose to restructure and cost-cutting measures, negatively impacting their staff.
Recent layoffs at Amazon, Twitch, and Google show that the corporations will continue to reduce workers in 2024 while they invest extensively in generative AI and take big measures.
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