eBay just sent a message its workforce will not forget

Core Viewpoint - eBay is cutting approximately 800 jobs, or about 6% of its global workforce, as part of a strategic realignment to focus on long-term priorities, marking its third round of layoffs in three years [1][3]. Group 1: Job Cuts and Strategic Realignment - The layoffs are part of a broader strategy to reinvest in the business and align the workforce with strategic priorities, with a commitment to support affected employees [3]. - This round of cuts follows previous layoffs of 1,000 jobs (9% of workforce) in January 2024 and 500 jobs (4% of staff) in February 2023, driven by rising labor costs and cooling consumer spending [4]. Group 2: Acquisition and Market Position - The job cuts come shortly after eBay announced a $1.2 billion acquisition of Depop, a secondhand fashion app, which has led to redundancies in marketing and technology teams [2][5]. - eBay is focusing on niche markets such as collectibles, secondhand fashion, and auto parts, where it has a competitive advantage over rivals like Amazon and Temu [6]. Group 3: Operational Changes - The restructuring is driven by the need to address operational model requirements, eliminate duplication, and align with future priorities [5]. - The company is shifting customer service roles to AI-powered tools and offshore centers in India and Ireland, reflecting a trend towards automation [6]. - Labor expenses have outpaced revenue growth for three consecutive years, prompting management to implement cost discipline measures [6].