Why eBay Shares Are Rising Today After Laying Off 9% Full-Time Workforce

eBay Inc. EBAY shares are trading higher in the premarket session on Wednesday.

The e-commerce marketplace operator said in a company statement that it will slash its workforce by approximately 1,000 roles or an estimated 9% of full-time employees. 

Additionally, the company said it plans to scale back the number of contracts within the alternate workforce over the coming months. 

Also Read: eBay Agrees To Pay $3M For Sending Live Cockroaches And Fetal Pig To Silent Critical Bloggers

“These are not actions we take lightly — and we recognize the impact they will have on all eBayers. We have to say goodbye to people who have made so many important contributions to the eBay community and culture, and this isn’t easy,” the company said.

The company’s overall headcount and expenses have outpaced business growth due to external pressures, like the challenging macroeconomic environment.

In the last reported quarter, the company’s operating expense surged 15% to $1.340 billion.

As a result, the firm plans to implement organizational changes better to meet the needs of customers around the world. 

Shortly, the company said it would begin notifying those employees whose roles have been eliminated and entering into a consultation process in areas where required. 

Also See: eBay’s GMV Forecast Reduced After Q3 Results, Analyst Sees Softness In UK And Germany

By the conclusion of 2022, eBay’s workforce totaled approximately 11,600 employees worldwide, with 6,800 based in the U.S., the Wall Street Journal reported. This reflected a growth compared to the roughly 10,800 global employees recorded at the conclusion of 2021.

The company has faced stiff competition from Amazon.Com, Inc AMZN, Walmart Inc. WMT, and emerging Chinese retailers such as Temu and Shein, the report added.

The company requested all U.S. employees work from home on January 24th to provide space and privacy for these conversations.

“These changes are difficult, but I’m confident that by working together we will become stronger than ever,” Jamie Iannone, President and CEO, said. 

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Price Action: EBAY shares are trading higher by 3.21% to $42.74 premarket on the last check Wednesday. 

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