Bid for self-preservation: eBay to slash 500 jobs as e-commerce giant eyes shift to new technologies

eBay is joining the ranks of other tech companies laying off staff in a self-preservation effort during a challenging economic environment.

The e-commerce giant announced it is cutting 500 jobs – about four per cent of its workforce – so that they can “continue to be successful”, in a memo written to employees on Tuesday by eBay boss Jamie Iannone.

He said: “To create long-term, sustainable growth for eBay, we need to evolve our organization as we take the next step in our strategy — focused on driving growth, building a trusted marketplace, empowering enthusiasts and seeding new technologies for the future”.

The move gives eBay more room to invest and create roles in “high-potential areas” such as technology, innovations, and key markets as well as boosting the efficiency and speed of decision-making.

eBay is being hit by diminishing consumer demand following a pandemic binge on clothes and household items as buyers stuck at home had more discretionary expenditure.

According to data from FactSet, the company is anticipating a 14m drop in active buyers in their end of year trading update later this month.

eBay shares edged up after hours on Tuesday but fell 0.7 per cent in premarket trading on Wednesday morning.

This comes as video-calling site Zoom also announced it is making around 1300 staff redundant.