eBay’s headquarters in San Jose, California, U.S.
Bloomberg | Getty Photos
EBay mentioned Tuesday that it plans to put off 9% of the corporate’s workforce, equal to about 1,000 full-time jobs, because the tech trade continues to downsize to start out 2024. The inventory rose greater than 3% in prolonged buying and selling.
Jamie Iannone, eBay’s CEO, advised workers in a letter revealed on a company weblog, that the corporate may also “cut back the variety of contracts we’ve got inside our alternate workforce over the approaching months.”
Iannone mentioned the job cuts are mandatory as a result of eBay’s “total headcount and bills have outpaced the expansion of our enterprise.”
“To deal with this, we’re implementing organizational adjustments that align and consolidate sure groups to enhance the end-to-end expertise, and higher meet the wants of our prospects all over the world,” Iannone mentioned. “Shortly, we’ll start notifying these workers whose roles have been eradicated and getting into right into a session course of in areas the place required.”
Following hefty job cuts final 12 months, tech firms have continued to remove positions in January as considerations about shopper and enterprise spending persist. Amazon, Alphabet and Unity have confirmed cuts this month, and SAP mentioned on Tuesday that it goals to hold out voluntary buyouts or allow job adjustments for 8,000 workers as a part of a restructuring program for 2024.
Concerning eBay’s cuts, Iannone mentioned he desires workers to earn a living from home on Jan. 24, “to supply some area and privateness for these conversations.”
“These adjustments are tough, however I am assured that by working collectively we’ll develop into stronger than ever,” Iannone mentioned. “Within the months forward, you will note a extra targeted, agile, and responsive eBay — one that’s higher positioned to advance our objective of making financial alternative for all.”
eBay shares dropped about 4% in November when the corporate reported third-quarter earnings and supplied fourth-quarter gross sales steering of $2.47 billion to $2.53 billion, falling in need of the $2.6 billion that analysts have been anticipating. Throughout a name with analysts, Iannone mentioned on the time that eBay had “noticed softening shopper developments so far in This autumn, and specific challenges in Europe, suggesting we might even see a extra muted seasonal uptick over the vacations.”
Though Iannone famous that the corporate’s third-quarter gross sales rose 5% year-over-year to $2.5 billion and returned $780 million of capital to shareholders, the chief mentioned “Inflationary pressures and rising rates of interest proceed to weigh on shopper confidence and pressured demand for discretionary items.”
Earlier in January, eBay mentioned it could pay a $3 million felony penalty as a part of a settlement associated to a cyberstalking and harassment marketing campaign carried out by a gaggle by former workers.
WATCH: Jim Cramer on eBay