EBay announced on Thursday that it is laying off about 800 employees, which amounts to roughly 6% of its global workforce. The online marketplace says the cuts are part of a broader effort to restructure the company and reinvest in key strategic areas.
A spokesperson stated the company is taking these steps to “align our structure with our strategic priorities.” They added that the decisions were based on business needs, eliminating duplicated roles, and focusing on future growth. The company confirmed the cuts are happening across various departments.
This is the latest in a series of layoffs at eBay over the past few years. As the e-commerce giant fights to keep up with bigger and faster-growing rivals like Amazon and Walmart, it has been trimming its headcount while pouring money into new technologies like artificial intelligence.
The news of these job cuts comes just days after eBay settled a high-profile lawsuit. The company reached an agreement with a Massachusetts couple who were the victims of a bizarre harassment campaign orchestrated by several former eBay employees. The couple had been stalked and threatened after publishing critical blog posts about the company.
Despite these challenges, eBay is making some big moves to stay competitive. The company recently announced plans to buy the secondhand clothing marketplace Depop for $1.2 billion. This acquisition is a clear attempt to win over younger shoppers, as about 90% of Depop’s users are under the age of 34.
CEO Jamie Iannone believes the Depop deal will help eBay grow its fashion business, which has become one of its fastest-growing categories. The company is also doubling down on other “focus categories” like collectibles, car parts, and refurbished goods. In its most recent earnings report, eBay said sales from these specific areas grew by more than 16% over the last year.
