E-commerce company eBay said today that it plans to let go of 1,000 employees or around 9% of its workforce due to the ongoing economic conditions. The company said in a blog post that it also plans to cut contract roles in the coming months.
The company’s CEO Jamie Iannone admitted that the company hired fast, but it didn’t grow enough to justify the 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 on Tuesday.
“To address this, we’re implementing organizational 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.”
The company joins a number of other organizations, including Google, Amazon (including Twitch and Audible), Discord, Duolingo, Pixar, and Unity announcing job cuts in January 2024.
In Q3 2023, eBay registered $2.5 billion in revenue and $1.3 billion in profits. However, the company gave a weak Q4 guidance, as it believed consumer spending was on a downward trajectory. The company also earned $2.2 billion by selling its equity in online ad business Adevinta to Permira and Blackstone last year. In July, the e-commerce company acquired Certilogo, which provides digital IDs to apparel. eBay is set to disclose its Q4 earnings next month.
The company has been embroiled in a few controversies of late. Earlier this month, it agreed to pay $3 million in a corporate cyberstalking case of a U.S.-based couple. Last September, the Department of Justice accused the e-tailer of selling products that could harm the environment and public health.