Online retailer eBay said Tuesday that it will be laying off 1,000 employees starting Wednesday. Photo courtesy of eBay
Jan. 24 (UPI) — Online retail giant eBay has announced that it is cutting 1,000 jobs, representing 9% of its full-time workforce, becoming the latest tech company to be hit by layoffs.
CEO Jamie Iannone made the announcement to employees in a note Tuesday, adding that the company also plans to reduce its number of contracts within its “alternate workforce” in the months to come.
“These are not actions we take lightly — and we recognize the impact they will have on all eBayers,” Iannone said.
Iannone said its U.S. employees have been asked to work from home on Wednesday to provide “space and privacy” for affected employees to be contacted.
“We’re committed to treating everyone with respect and empathy through this transition and providing impacted employees with support and resources,” he said.
Despite the layoffs, Iannone defended the company’s current strategy, stating they have seen growth in the areas they have invested in over the past three years, but that structural reorganization is needed to allow the company to be “more nimble, bring like-work together and help us make decisions more quickly.”
“Despite facing external pressures, like the challenging macroeconomic environment, we know we can be better with the factors we control,” he said, adding that the job cuts are necessary as “our overall headcount and expenses have outpaced the growth of our business.”
The announcement by eBay comes as numerous tech companies have made cuts post COVID-19 pandemic due to several concerns, including job corrections following mass hiring practices and inflation.
Last year, more than 1,180 tech companies laid off 262,595 employees, an increase from nearly 165,000 employees in 2022, according to layoffs.fyi.
So far this year, 13,240 employees at 72 tech firms have been let go, the tracking website states.
The move by eBay comes a day after TikTok, Spotify and Riot Games announced layoffs on Monday.