Cryptocurrency

eBay to sack 1,000 employees, says expenses ‘outpace’ business growth

The German headquarters of online marketplace eBay is pictured at Europarc Dreilinden business park south of Berlin in Kleinmachnow, Germany. FILE/REUTERS

eBay, an e-commerce giant, will lay off about 1,000 employees, accounting for 9 per cent of its current workforce, the company said.

Online retailer eBay Inc has joined the major tech companies Google, Amazon, Meta with its move to cut down workforce to reduce cost.

eBay calls lay off ‘organisational change’

In a letter shared with employees, eBay CEO Jamie Iannone said: “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 organisational 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,” the eBay CEO said.

In February 2023, eBay laid off 500 employees globally, representing 4 per cent of its total workforce.

However, layoffs in the company won’t end as eBay is reportedly planning more rounds of job cuts “in the next few months.”

As per reports, layoffs at eBay have been announced, despite the company making $1.3 billion in profit last quarter and labelling it as “another quarter of solid results.”

One of the main reasons for the tech industry to cut down its workforce is over hiring. A number of companies over hired employees after the COVID-19 pandemic, however, by the end of 2022, a phase of mass layoffs began with companies deciding to restructure and take cost-cutting measures at the expense of their workforce.

With inputs from agencies

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