eBay announces major workforce reduction and contract scaling

In a strategic move to align with its business growth, eBay Inc revealed plans on Tuesday to slash approximately 1,000 jobs, constituting around 9 per cent of its existing workforce.

This is based on a Reuters report.

The e-commerce giant's CEO, Jamie Iannone, conveyed in a letter to employees that the decision was a response to the company's headcount and expenses outpacing the growth of its business.

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"While we are making progress against our strategy, our overall headcount and expenses have outpaced the growth of our business," stated Iannone in the internal communication cited by Reuters.

He further explained that the organisational changes were aimed at aligning and consolidating certain teams to enhance the end-to-end experience for customers globally.

This move comes amid a broader trend of tech layoffs in the US following a period of significant hiring during the pandemic, observed notably in industry giants such as Amazon and Google.

In addition to the reduction in jobs, eBay announced its intention to scale back the number of contracts within its alternative workforce over the next few months.

This recent announcement follows eBay's decision last February to lay off 500 employees globally, which represented 4 per cent of its total workforce at that time.

(With inputs from Reuters)