EBay announced on Tuesday its plans to cut 9% of its workforce, which is equal to around 1,000 full-time jobs.

According to CNBC, this is happening as the tech industry keeps downsizing to start the year 2024. Following the announcement, the company's stock reportedly jumped over 3% in extended trading.

eBay Announces Layoffs

eBay's CEO Jamie Iannone announced the company's decision in a letter to employees posted on a corporate blog. Iannone cited the need for organizational changes due to the company's overall headcount and expenses outpacing business growth.

He said this strategic shift must be implemented to address the issue and "to align and consolidate certain teams" to enhance customer experiences globally.

"Shortly, we will begin notifying those employees whose roles have been eliminated and entering into a consultation process in areas where required," Iannone noted.

"Leaders will communicate the news directly via Zoom, and your VP or eLT member will send an email once the notifications in their group have been completed. We request that all US employees work from home on January 24th to provide some space and privacy for these conversations," he added.

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Layoffs Hard for eBay 

Jamie Iannone acknowledged the difficulty of the decision, emphasizing the impact on individuals who have contributed significantly to eBay's community and culture. 

"These changes are difficult, but I'm confident that by working together we will become stronger than ever... In the months ahead, you will see a more focused, agile, and responsive eBay - one that is better positioned to advance our purpose of creating economic opportunity for all," he said. 

Iannone further noted that the company also plans to "scale back the number of contracts we have within our alternate workforce over the coming months."

Tuesday's announcement marks eBay's second round of job cuts since February last year when the firm said it would lay off 500 employees. As consumer and business spending concerns persist, tech firms have continued to eliminate positions this month.

Amazon, Alphabet, Unity, and SAP are some of the companies that have confirmed cuts this January as part of their respective restructuring program for this year.

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