Joining the list of companies that were ditching their workforce to cut costs, eBay announced laying off 500 employees today – representing 4% of it’s global workforce.
May this sweetened some investors, as the company’s share price rise about 1% in aftermarket trade. Ditching the staff, eBay CEO said this move will give them an additional space to invest in new technologies and create new jobs in high-potential areas.
eBay Employee Layoffs
Unable to withstand to the current economic turmoil, eBay said it’ll be cutting 500 employees to stay afloat. This number represents 5% of the company’s total workforce. Soon after this announcement, eBay’s share price rose by 1% in the aftermarket trade.
Informing this hard decision to employees, eBay CEO Jamie Iannone said;
“This shift gives us additional space to invest and create new roles in high-potential areas – new technologies, customer innovations and key markets.”
eBay is just one among the many companies that laid off several of it’s employees – citing similar reasons. Low demand resulted by high inflation and high interest rates has put consumers on check, as most have tightened their spending in recent months.
The ongoing economic turmoil is so strong that, even tech giants like Alphabet, Amazon, and Microsoft haven’t been able to withstand. Each of them announced cutting thousands of jobs across segments to save costs, and focus on areas only where it’s necessary.
According to data from the Challenger, Gray & Christmas Inc, the tech sector overall has ditched more than 97,000 jobs last year – up 649% compared to 2021.
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