eBay has turn out to be the most recent tech large to announce mass layoffs within the first month of 2024.
The on-line market has this week confirmed it plans to cut back its workforce by roughly 1,000 – equating to roughly 9% of its full-time workforce – in an try to “better position eBay for long-term, sustainable growth.” On high of that, it confirms contracts inside its alternate workforce are additionally set to be “scaled back.”
In a observe despatched to staff, the California-based firm’s President and CEO, Jamie Iannone outlined his long-term technique and confirmed that modifications revamped the previous three years have resulted in “increases in customer satisfaction and a meaningful improvement in our growth.”
However, Iannone goes on to quote the necessity to have a extra optimized workforce that can enable for selections to be made faster, permitting them to be extra “nimble”.
Iannone additionally acknowledges exterior pressures the enterprise faces, such because the difficult macroeconomic setting, earlier than he admits that whereas eBay believes its present technique is right, its “overall headcount and expenses have outpaced the growth of the 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,” Iannone mentioned.
Founded in 1995, eBay is now value over $21 billion. The on-line public sale website had forecast fourth-quarter income and revenue in 2023 would are available under Wall Street estimates.
Intensifying competitors from the likes of Amazon and shopper spending cutbacks in developed economies resulting from inflation pressures have squeezed eBay’s backside line.
A troublesome begin to 2024 for tech giants
The tech trade continues to make widespread cuts to its workforce following a 2023 that Meta CEO, Mark Zuckerberg described as “the Year of Efficiency.”
In the primary few weeks of 2024 alone, the tech sector has skilled greater than 13,000 job cuts from 72 totally different tech corporations, in accordance with layoffs.fyi. That follows over 260,000 from greater than 1,100 companies within the sector in 2023 and 165,000 layoffs in 2022.
Earlier this week, TikTookay introduced 60 of its US-based workforce was being minimize, whereas Google and Discord have additionally introduced widespread layoffs within the first month of the yr.
Featured Image: eBay
