eBay just sent a message its workforce will not forget

eBay (EBAY) is cutting astir 800 jobs, oregon astir 6% of its planetary workforce, arsenic the e-commerce institution realigns its operation astir semipermanent strategical priorities. The San Jose-based institution confirmed the layoffs Thursday, marking its 3rd circular of occupation cuts successful 3 years.

The cuts travel conscionable days aft eBay announced connected Feb. 18 a $1.2 cardinal woody to get Depop, the secondhand manner app fashionable with Gen Z shoppers, from Etsy. Shares roseate much than 3% Thursday arsenic investors cheered the outgo subject move.

When TheStreet reached retired to eBay for comment, a institution spokesperson said: "We are taking steps to reinvest crossed our concern and align our operation with our strategical priorities, which volition impact definite roles crossed our workforce. We are grateful for the contributions of the employees impacted and are committed to supporting them with attraction and respect."

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On background, the spokesperson confirmed the cuts see the elimination of astir 800 roles globally, oregon an estimated 6% of employees, adding that eBay is continuing to prosecute successful precedence areas aligned with its strategy. Employees were notified Wednesday.

This is not eBay's archetypal rodeo with restructuring. The institution chopped 1,000 jobs, oregon astir 9% of its workforce, successful January 2024, with CEO Jamie Iannone citing labour costs that had outpaced gross growth. Before that, it eliminated astir 500 roles, oregon 4% of staff, successful February 2023 arsenic user spending cooled aft the pandemic online buying boom.

Thursday's circular reflects a deliberate pivot alternatively than fiscal distress. The cuts dispersed crossed the institution and were driven by operating exemplary needs, areas of duplication, and alignment to aboriginal priorities. The Depop acquisition brought redundancies successful marketing, growth, and exertion teams that absorption is present addressing.

• Acquisition overlap. Depop teams duplicate respective eBay selling and maturation functions, creating earthy consolidation opportunities crossed some platforms.

• AI automation. Customer work and enactment roles are shifting to AI-powered tools and offshore centers successful India and Ireland.

• Niche focus. Capital is being redirected toward collectibles, secondhand fashion, and car parts, the 3 categories wherever eBay holds a structural borderline implicit Amazon and Temu.

• Cost discipline. Labor expenses person outrun gross maturation for 3 consecutive years, squeezing margins that absorption is present moving to recover.