E-commerce company eBay said today that it plans to lay off 1,000 employees, or about 9% of its workforce, due to ongoing economic conditions. The company said in Blog post It also plans to reduce contractual roles in the coming months.
CEO Jimmy Iannone acknowledged that the company has been hiring quickly, but has not grown enough to justify headcount.
“Despite facing external pressures, such as a challenging macroeconomic environment, we know we can do better with the factors we control. As we make progress on our strategy, our overall headcount and expenses will… Our business growth has outpaced.”
“To address this issue, we are implementing organizational changes that align and unify specific teams to improve the overall experience and better meet the needs of our customers around the world.”
The company joins a number of others including Google, Amazon (including Twitch and Audible), Discord, Duolingo, Pixar and Unity that have announced job cuts in January 2024.
In the third quarter of 2023, eBay reported revenue of $2.5 billion and profit of $1.3 billion. However, the company gave weak guidance for the fourth quarter, it believes Consumer spending was on a downward trajectory. The company also raised $2.2 billion by selling its shares in online advertising company Adevinta to Permira and Blackstone last year. In July, the e-commerce company acquired Certilogo, which provides digital IDs for clothing. eBay is scheduled to report its fourth-quarter earnings next month.
The company has been involved in a few controversies recently. Earlier this month, it agreed to pay $3 million in a company cyberstalking case involving a US-based couple. Last September, the Ministry of Justice accused the company of selling products that could harm the environment and public health.