eBay has decided to follow the lead of Google, Amazon, Apple and other tech giants who have decided to start the year by cutting jobs . The e-commerce company announced yesterday that it would lay off around 1,000 workers, the equivalent of 9% of its full-time workforce.
These layoffs are just the beginning, however, as eBay plans to also cut ties with an unspecified number of external employees linked to the company over the course of the past few months.
Despite posting profits of $1.3 billion in the last quarter, eBay is now stressing the need for change. Jamie Iannone, the company's kuwait number screening president and CEO, emphasizes that "there are more things we can do to ensure our success." Iannone also argues that eBay should be a "more agile" company and make decisions more quickly to achieve "sustainable long-term growth."
eBay argues it expanded its workforce too quickly
Paradoxically, during the presentation of the results for the last quarter, Steve Priest, CFO of eBay, stated that he was "very proud of our teams for meeting our quarterly financial objectives, maintaining prudent spending discipline and executing projects perfectly in line with our strategy."
To justify the layoffs, eBay uses the argument (widely used by other technology companies as well) that it expanded the size of its workforce too quickly. "While we are making progress in executing our strategy, the size of our workforce and the expenses we are accruing have lagged behind our growth rate," eBay said.
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