eBay Inc. will lay off about 1,000 employees, affecting about 9 percent of its full-time workforce, the company said on Monday, citing headcount and costs that have outpaced growth in a slowing economy . The cuts are the latest in a series of layoffs in the tech industry.
The CEO, Jamie Iannone, said in a message to employees that the company will also reduce the number of “contracts in place in our replacement workforce in the coming months.”
See also: Google to employees: Expect more layoffs this year
Those being laid off will be informed by their bosses via Zoom.
“We need to better organize our teams for speed, which will allow us to be more agile, do similar work together, and make decisions faster,” he said in the memo, which was posted online.
"These changes are difficult, but I am confident that by working together we will become stronger than ever," Iannone added.
eBay is the latest tech company to lay off employees, after it also ramped up hiring during the COVID-19 pandemic, when people bought everything online.
A few days ago, Google announced new layoffs. TikTok also said it was laying off dozens of employees, and video game company Riot Games is cutting its staff.
See also: Twitch: It is about to lay off almost 35% of its staff
Other tech companies, including Spotify, Microsoft, Meta , and IBM, have also recently cut jobs.
The eBay chief pointed to these concerns about the need for layoffs: “Despite external pressures, such as the challenging macroeconomic environment, we know we can be better with the factors we control,” Iannone said.
This year alone, more than 70 tech have laid off 13,240 people. During the same period last year, tech companies laid off far more workers – about 38,000 employees.
Layoffs on such a large scale can have significant impacts on the tech job market. The increased availability of workers can lead to increased competition for available jobs, forcing workers to accept lower wages or less attractive working conditions.
See also: SpaceX: Accused of illegally firing employees
Layoffs can then have a psychological impact on employees, increasing uncertainty and fear of job instability. This can lead to reduced productivity and creativity, as employees may be less willing to take risks or invest in new ideas.
Finally, layoffs may lead to changes in the structure of the labor, as companies may seek more efficient ways to perform tasks, such as automation or upgrading existing workers.
Source: abcnews.go.com
