eBay to lay off 9pct of workforce in push to simplify operations, internal memo shows
EBay will lay off about nine per cent of its workforce as the online marketplace looks to simplify operations and shift resources to its fastest-growing areas, CEO Jamie Iannone told staff in a memo that was reviewed by Reuters.
eBay plans to lay off nine percent of its workforce, with around 1,100 job cuts, as the company seeks to streamline operations and focus on its fastest-growing areas, according to an internal memo reviewed by Reuters. The company currently employs 12,300 people. eBay had previously reduced its workforce by six percent, or 800 employees, in February.
The company's strategy has been successful, with its shares rising nearly 40 percent this year, outperforming the S&P 500's 12 percent gain. CEO Jamie Iannone stated in the memo that capturing the significant opportunities ahead requires thoughtful choices about where to focus and invest. The layoffs come after eBay's recent US$1.4 billion acquisition of fashion resale platform Depop, which expanded its reach among younger consumers and strengthened its position in the rapidly growing re-commerce market.
This move led to eBay forecasting third-quarter revenue above Wall Street estimates when it last reported results in August. eBay's efforts have also attracted the attention of GameStop CEO Ryan Cohen, who submitted an unsolicited US$56 billion bid for the company in May, which eBay rejected as neither credible nor attractive.
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