eBay Inc. is taking significant steps to streamline its operations and adapt to the current economic climate by implementing changes to its workforce. The e-commerce company recently announced its decision to cut approximately 1,000 jobs, which accounts for roughly 9% of its full-time employees. Additionally, eBay plans to reduce the amount of work it outsources to contractors. The company believes that its staffing and expenses have been growing at a faster rate than its overall business, necessitating these measures.

In a statement released on Tuesday, eBay emphasized the need to be more agile and flexible in the face of a challenging economic environment. The company stated, “While we are making progress against our strategy, our overall headcount and expenses have outpaced the growth of our business.” As a result, eBay is undergoing organizational changes to consolidate and align certain teams, with the goal of enhancing the end-to-end customer experience and catering to the demands of its global customer base.

This is not the first time eBay has made workforce reductions. In February 2023, the company announced plans to cut approximately 500 employees, or about 4% of its workforce. This decision was mainly attributed to a decrease in consumer spending following the rapid growth of e-commerce during the pandemic. eBay’s move to reduce its workforce is in line with actions taken by other tech companies, with over 60 of them, including industry giants Amazon.com Inc. and Alphabet Inc., having laid off nearly 11,000 employees so far this year, according to Layoffs.fyi, a platform that tracks tech industry job cuts.

eBay has been facing intense competition from larger rivals like Amazon.com Inc. and Walmart Inc., resulting in a decline in its market share over the years. To counter this trend, Chief Executive Officer Jamie Iannone has been actively seeking new niches for the company, such as luxury watches and collectibles. Moreover, eBay is focusing on refurbished items to appeal to cost-conscious shoppers. As of September 30, 2024, the company had 132 million active buyers, marking a 3% decrease compared to the previous year.

Investors responded positively to eBay’s announcement, causing the company’s stock to gain approximately 4% in after-hours trading. However, over the past year, eBay’s stock has experienced a decline of 13%. As eBay continues to make strategic adjustments to its workforce and business model, the impact of these changes on the company’s overall performance in the long run remains uncertain.

Useful links:
eBay Inc. official website
Layoffs.fyi – platform tracking tech industry job cuts