eBay to cut about 9% of workforce, around 1,100 jobs, in push to simplify operations
CEO Jamie Iannone told staff in a memo reviewed by Reuters that eBay will lay off about 9 per cent of its workforce to simplify operations and shift resources to its fastest-growing areas.
eBay will lay off about 9 per cent of its workforce as the online marketplace moves to simplify operations and shift resources to its fastest-growing areas, CEO Jamie Iannone told staff in an internal memo reviewed by Reuters, reports the Indian Express.
A spokesperson for eBay confirmed the layoffs to Reuters on Wednesday. The cut works out at roughly 1,100 jobs based on the 12,300 employees eBay had at the end of last year, according to the Indian Express report. The company had already let go about 6 per cent of its workforce, or 800 employees, in February in a similar streamlining effort.
“Our strategy is working,” Iannone said in the memo, adding that “continuing to capture the significant opportunity ahead requires us to make thoughtful choices about where we focus and invest.” He said affected staff would be informed in the coming days.
eBay has sought to set itself apart from rivals by pushing into authenticated luxury goods, collectibles and refurbished products, a strategy that has helped its shares rise nearly 40 per cent this year, outperforming the benchmark S&P 500’s roughly 12 per cent gain. The company has also benefited this year from its $1.4bn deal for fashion resale platform Depop, which expanded its reach among younger consumers.
That momentum helped eBay forecast third-quarter revenue above Wall Street estimates when it last reported results in August. The company is due to report its latest earnings next week.
The restructuring also comes after GameStop CEO Ryan Cohen made an unsolicited $56bn bid for the company in May, which eBay rejected, saying it was “neither credible nor attractive.”
More on eBay layoffs.
Sources: Reuters via Indian Express, Reuters via The Edge Malaysia
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