E-commerce giant eBay is set to cut approximately 1,000 positions, equivalent to about 9% of its full-time workforce. Additionally, the company is planning to scale back the number of contracts within its alternative workforce in the months ahead.
eBay's President and CEO, Jamie Iannone, conveyed the message in a note sent to the internal workforce on Tuesday, January 23. The correspondence was titled "Ensuring eBay's Long-Term Success."
Headcount and Expenses Surpass Business Growth
SAN JOSE, CALIFORNIA - FEBRUARY 22: A sign is posted in front of eBay headquarters on February 22, 2023, in San Jose, California. E-commerce company eBay will report fourth-quarter earnings today.
Iannone emphasized that there is a commitment to constructing a more robust eBay for the future, envisioning growth and resilience in the face of challenges.
Over the preceding three years, significant alterations have been made to enhance experiences across categories, and innovation at the company has been accelerated.
Positive outcomes, according to him, are evident in areas of investment, with consistent increases in customer satisfaction and substantial improvements in growth compared to the market.
As per The Free Press Journal, eBay recorded a profit of USD 1.3 billion in the last quarter.
However, Iannone articulated the imperative for change amid a "challenging macroeconomic environment," noting progress in line with the company's strategy but acknowledging that overall headcount and expenses have exceeded business growth.
Consequently, organizational changes are underway to align and consolidate specific teams, with the aim of improving the end-to-end experience and better addressing the needs of customers worldwide.
"Our strategy is the right one, but there is more we can do to ensure our success," the CEO wrote. "We need to better organize our teams for speed - allowing us to be more nimble, bring like-work together, and help us make decisions more quickly."
Iannone affirmed the efficacy of the strategy while recognizing room for improvement to ensure success. Addressing the necessity for enhanced team organization to boost agility, streamline collaboration, and expedite decision-making, he disclosed details about the ongoing changes designed to position eBay for "long-term, sustainable growth."
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eBay Begins Employee Notifications and Consultations After Role Eliminations
eBay has announced plans to notify employees whose roles are being eliminated and initiate a consultation process in necessary areas. Leaders will use Zoom for direct communication, and VPs or eLT members will send emails after completing notifications within their groups.
To facilitate these conversations, all U.S. employees are requested to work from home on January 24th. The company has also asked the employees to "provide some space and privacy for these conversations".
"We're committed to treating everyone with respect and empathy through this transition and providing impacted employees with support and resources," Iannone stated.
"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 added.
As of December 31, 2022, eBay employed approximately 11,600 people globally, with around 6,800 based in the U.S., according to the U.S. Securities and Exchange Commission.
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