Tech Industry Job Cuts: eBay Plans to Lay Off Approximately 1,000 Full-Time Workers

eBay is set to cut approximately 1,000 full-time employees, constituting a 9% reduction in its workforce, in line with a broader tech industry trend of downsizing in 2024. Despite the layoffs, eBay’s stock saw a 3% increase in extended trading. CEO Jamie Iannone communicated the decision in a letter, attributing it to the company’s expenses outpacing business growth. He also outlined plans to decrease the number of contracts in their alternate workforce. The restructuring involves organizational changes to enhance the end-to-end customer experience, and affected employees will be notified soon. This move aligns with similar job cuts by tech giants like Amazon, Alphabet, Unity, and SAP, the latter announcing a restructuring program for 8,000 employees. Iannone anticipates a more focused and responsive eBay in the coming months. The company’s shares had previously dropped by 4% in November due to Q4 revenue guidance falling short of Wall Street estimates. Iannone attributed this to softening consumer trends, particularly in Europe, and predicted a muted seasonal uptick over the holidays, influenced by inflationary pressures and rising interest rates. Earlier in the month, eBay agreed to a $3 million penalty related to a cyberstalking and harassment campaign by former employees.