eBay will cut about 1,000 jobs, or 9 per cent of its full-time employees, and reduce work for its outside contractors, saying its staffing and expenses have outpaced growth.
The e-commerce company said it needs to be “more nimble” in the face of a “challenging” economic environment.
“While we are making progress against our strategy, our overall headcount and expenses have outpaced the growth of our business,” the San Jose, California-based company said Tuesday in a statement.
“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.”
How are China’s young graduates and universities coping with high unemployment?
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The announcement marks the second round of job reductions at eBay in a year. The online marketplace in February 2023 said it would cut about 500 employees, or about 4 per cent of its workforce, citing a slowdown in consumer spending following the pandemic-fuelled e-commerce boom.
For years, eBay has been losing market share to bigger rivals such as Amazon.com and Walmart and has been gradually selling pieces of the company.
Chief executive officer Jamie Iannone is trying to find niches for the site, such as luxury watches and collectibles, as well as highlighting refurbished items to appeal to cost-conscious shoppers.
The company had 132 million active buyers as of September 30, down 3 per cent from a year earlier.
The shares gained about 4 per cent in extended trading after closing at US$41.41 in New York. The stock has declined 13 per cent in the past 12 months.
