eBay plans to cut 1,000 jobs as headcount and expenses outpaced growth

Layoffs have taken a significant turn in 2024, with eBay being the latest company to be affected. The company is set to cut its workforce by 1,000 employees, constituting approximately 9% of its staff, citing persistent economic conditions.

In a blog post, the company revealed plans to trim contract roles in the upcoming months as well. CEO Jamie Iannone acknowledged that the company hired rapidly but did not experience sufficient growth to justify the current headcount.

“Despite facing external pressures, like the challenging macroeconomic environment, we know we can be better with the factors we control. While we are making progress against our strategy, our overall headcount and expenses have outpaced the growth of our business,” Iannone said in a note sent to employees. 

“To address this, we’re implementing organisational changes that align and consolidate certain teams to improve the end-to-end experience, and better meet the needs of our customers around the world,” added Iannone. 

Despite registering $2.5 billion in revenue and $1.3 billion in profits in Q3 2023, eBay provided a cautious Q4 guidance, citing a perceived decline in consumer spending. The company also generated $2.2 billion by selling its equity in the online ad business Adevinta to Permira and Blackstone last year. 

The company joins several other organisations, including Google, TikTok, Amazon’s Twitch, Discord, Duolingo, Pixar, and Unity, in announcing job cuts in January 2024.