The latest layoffs represent about 9pc of eBay’s current workforce.
In its second major layoff in a year, online marketplace eBay has confirmed that it is cutting around 1,000 jobs in a bid to simplify operations and reinvest in high-growth areas.
In a statement to news publications, a spokesperson said that eBay is working to “capture the significant opportunity ahead”. The layoffs would ensure the company continues to “operate from a position of strength by aligning our teams and resources with our top strategic priorities”, they added. The company said it will continue to hire in “priority areas aligned with our strategy”
Reuters, which reviewed a memo sent to employees by eBay CEO Jamie Iannone, was first to report on the news yesterday (21 October).
“Continuing to capture the significant opportunity ahead requires us to make thoughtful choices about where we focus and invest,” Iannone said in the memo, according to Reuters. “Our strategy is working”. Company share prices were up marginally at market close yesterday.
The latest layoffs represent about 9pc of eBay’s current workforce. At the end of last year, the company employed 12,300, with around 7,200 based in the US. In February, it cut around 800 jobs (amounting to 6pc of its global workforce).
Earlier that month, the company purchased second-hand fashion marketplace Depop from Etsy for $1.4bn to reach a younger, resale-savvy customer base.
eBay reported a revenue growth of 15pc at $3.1bn for its second quarter this year, and expects third quarter gains at around eight to 10pc. Its push into authenticated luxury goods, collectibles and refurbished products has helped push its share price up more than 40pc in a year.
Earlier this year, GameStop CEO Ryan Cohen made an unsolicited $56bn bid to buy eBay. The deal was promptly rejected by the company, which called the offer “neither credible nor attractive”.
Cohen is now reportedly considering proposing a partnership with the company instead, which would allow eBay to leverage GameStop’s roughly 1,600 US retail locations.
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