- eBay announced layoffs of 1,000 jobs amid slowed growth.
- Additional contractors will be reduced due to lower consumer spending.
- CEO Jamie Iannone said eBay over-hired during expansion.
E-commerce giant eBay is the latest tech company to trim headcount, announcing plans to eliminate 1,000 jobs, amounting to 9% of its workforce. Additional contractor roles will also be reduced going forward due to unfavorable macroeconomic conditions impacting consumer spending.
Over-hired during rapid expansions?
In a message to employees, CEO Jamie Iannone acknowledged the company over-hired during periods of rapid expansion and is now rightsizing to better align with slowed business growth.
The reductions come despite steady Q3 financials of $2.5 billion in revenue and $1.3 billion in profit. However, disappointing Q4 guidance reflecting broader retail declines has triggered cost-cutting efforts.
Refocusing on optimal customer experience
eBay joins numerous tech firms across sectors that have unveiled layoffs in January 2024 alone, including Google, Amazon, Discord, Duolingo, and others. While executing well against internal strategy per Iannone, external pressures have forced the company to consolidate teams and refocus priorities on optimal customer experience.
This necessary course correction indicates the breakneck hiring practices common during bubbles of momentum can prove problematic when growth stalls.
Plan revealed soon
As macro conditions continue to bite into consumer spending, additional tech companies may have to follow eBay’s lead in realigning labor costs with new business realities.
For eBay specifically, its future path will be revealed when fourth-quarter results drop next month.
