EBay Inc. said late Tuesday it will cut about 1,000 jobs, or 9% of its full-time workforce, in order to better position the company for future sustainable growth.
“Our overall headcount and expenses have outpaced the growth of our business,” Chief Executive Jamie Iannone said in a letter to employees that eBay posted on its website. “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 said the company needs to be better organized for speed, “allowing us to be more nimble, bring like-work together and help us make decisions more quickly.”
He also said eBay will scale back the number of contracts it has with “our alternate workforce” in the coming months.
The San Jose, Calif,-based online marketplace had 11,600 employees as of the end of 2022, according to FactSet data.
EBay
EBAY,
reported disappointing quarterly earnings in November, with declining margins and weak revenue guidance. The stock is down about 11% over the past 12 months, compared to the S&P 500’s
SPX
21% gain over that time.
2024 has started with a wave of layoffs, especially in the tech industry, at companies such as Amazon, Alphabet and Riot Games. Also on Tuesday, German software giant SAP
SAP,
announced job changes or buyouts for 8,000 employees, or 7% of its workforce, during the coming year.
Check out On Watch by MarketWatch, a weekly podcast about the financial news we’re all watching — and how that’s affecting the economy and your wallet. MarketWatch’s Jeremy Owens trains his eye on what’s driving markets and offers insights that will help you make more informed money decisions. Subscribe on Spotify and Apple.