Read eBay CEO Jamie Iannone’s Memo To Staff About Layoffs

^{This text initially appeared on Business Insider.}

eBay is slicing 1,000 jobs — a discount of about 9% of its workforce.

CEO Jamie Iannone informed staff in a memo Tuesday that it will make the newest spherical of layoffs so it might be “extra nimble.”

Iannone pointed to its bills and headcount eclipsing the expansion of its enterprise within the memo shared on the corporate web site. He additionally mentioned it will additionally “cut back” on the variety of contractors it hires.

The e-commerce large laid off 500 employees final February, which was about 4% of its workforce. In November, the corporate posted a third-quarter income of $2.5 billion, up 5% 12 months over 12 months.

The eBay chief mentioned within the memo, “Regardless of going through exterior pressures, just like the difficult macroeconomic setting, we all know we will be higher with the components we management. Whereas we’re making progress towards our technique, our general headcount and bills have outpaced the expansion of our enterprise.”

Iannone warned buyers in a post-earnings name in November that it was witnessing “softening client developments” early in its fourth quarter. He added that it may see a “extra muted seasonal uptick over the vacations.”

eBay’s newest job cuts come amid a recent wave of mass layoffs within the tech business this 12 months. Google axed over 1,000 workers this month and Amazon let go of hundreds of staff at Prime Video and MGM Studios and an extra 500 individuals at its streaming platform Twitch.

Learn the total memo the CEO despatched to staff beneath.

^Crew,

^{We’re on a path to constructing a stronger eBay for the long run — one that’s rising, and resilient within the face of any problem. Over the previous three years, we made elementary adjustments in our experiences throughout classes and accelerated the tempo of innovation at eBay. In areas the place we’re investing, we’re seeing constant will increase in buyer satisfaction and a significant enchancment in our progress relative to the market.}

^{Our technique is the appropriate one, however there may be extra we will do to make sure our success. We have to higher manage our groups for pace — permitting us to be extra nimble, convey like-work collectively, and assist us make selections extra shortly. At present, I’m sharing information about adjustments we’re implementing to higher place eBay for long-term, sustainable progress.}

^{Probably the most important and hardest of those selections is to scale back our present workforce by roughly 1,000 roles or an estimated 9% of full-time staff. Moreover, we plan to cut back the variety of contracts now we have inside our alternate workforce over the approaching months. These usually are not actions we take calmly — and we acknowledge the impression they may have on all eBayers. We’ve got to say goodbye to individuals who have made so many necessary contributions to the eBay neighborhood and tradition, and this is not straightforward.}

^{The Want for Change}

^{Regardless of going through exterior pressures, just like the difficult macroeconomic setting, we all know we will be higher with the components we management. Whereas we’re making progress towards our technique, our general headcount and bills have outpaced the expansion of our enterprise. To deal with this, we’re implementing organizational adjustments that align and consolidate sure groups to enhance the end-to-end expertise, and higher meet the wants of our prospects all over the world.}

^{Subsequent Steps}

^{Shortly, we’ll start notifying these staff whose roles have been eradicated and getting into right into a session course of in areas the place required. Leaders will talk the information straight by way of Zoom, and your VP or eLT member will ship an e-mail as soon as the notifications of their group have been accomplished.}

^{We request that every one U.S. staff do business from home on January twenty fourth to supply some area and privateness for these conversations. We’re dedicated to treating everybody with respect and empathy by this transition and offering impacted staff with assist and assets.}

^{Wanting Forward}

^{These adjustments are tough, however I am assured that by working collectively we’ll turn out to be stronger than ever. Within the months forward, you will note a extra targeted, agile, and responsive eBay — one that’s higher positioned to advance our objective of making financial alternative for all.}

^{Thanks,
Jamie}