In response to a sluggish economy, e-commerce site eBay Inc. will lay off over 1,000 workers, or around 9 percent of its full-time personnel. The company cites rising expenses as the reason for the layoffs. This is the most recent round of layoffs in the IT sector.
Although they rapidly increased recruiting during the COVID-19 epidemic as individuals spent longer and more money online, internet companies like eBay have recently begun laying off workers.
According to a statement sent to staff by CEO Jamie Iannone in January, the number of contracts with our alternative labor will be reduced over the next few months. Iannone said employees would be informed of their layoffs via Zoom sessions with their supervisors.
eBay’s internal issues have also had a negative impact on its operations.
According to court filings, the online store will have to pay a three-million-dollar fine to settle U.S. criminal charges related to a harassment campaign in which workers delivered a Massachusetts couple real spiders, cockroaches, and other concerning objects to their house.
After more than three years of prosecution for an extensive plot to intimidate a couple who had published an online newsletter named EcommerceBytes, which had upset the site’s executives with its coverage, the Justice Department finally brought charges against eBay, including stalking, witness tampering, and obstruction of justice.
Tech giants like Amazon and Google have been slashing jobs to save expenses and increase profits.
Amazon announced that its MGM Studios and Prime Video divisions would eliminate hundreds of positions. Two other businesses owned by the e-commerce behemoth announced significant layoffs. Audible, an online service for audiobooks and podcasts, is reducing its staff by around 5%, and Twitch, a streaming platform, is laying off more than 500 people.
Reports show corporations, including Amazon and Google, have recently implemented layoffs to improve their financial positions.
Early in January, Google announced the layoff of hundreds of employees from its hardware, voice assistance, and engineering teams. TikTok also announced the layoff of dozens of employees from its ads and sales departments. Lastly, Riot Games announced the layoff of 11% of its employees.
IBM, Microsoft, Meta, and Spotify have all lately laid off employees.
