eBay, the online marketplace giant, is set to let go of around 1,000 employees, equating to 9% of its full-time workforce. This move comes despite the company’s recent profitable quarter, with earnings of $1.3 billion. The layoffs are part of a broader strategy to streamline operations and make the company more “nimble,” according to eBay’s CEO, Jamie Iannone.
The decision to downsize follows a trend among tech companies, including Google, Discord, and Twitch, who have also made significant layoffs recently. eBay’s layoffs, however, will extend beyond full-time employees, with an unspecified number of contractors also set to be let go in the coming months.
Despite the company’s solid financial performance, Iannone insists there’s a “Need for Change.” He believes eBay can do more to ensure its success and argues for a leaner, more agile company that can make decisions more quickly, positioning itself for “long-term, sustainable growth.”
Interestingly, this move comes after eBay’s CFO, Steve Priest, expressed pride in the company’s financial discipline and strategic execution. However, Iannone counters that the company’s headcount and expenses have outgrown the business’s growth, necessitating the layoffs.
In a memo to employees, Iannone acknowledged the difficulty of the decision, recognizing the contributions of those who will be leaving the company. He also outlined the company’s commitment to treating everyone with respect and empathy during the transition and providing support and resources to those affected.
The layoffs are a bitter pill to swallow, especially considering the hefty $57 million severance package awarded to Iannone’s predecessor, former eBay CEO Devin Wenig. However, Iannone remains confident that these changes will result in a more focused, agile, and responsive eBay, better positioned to create economic opportunities for all.