What’s going on:
On Tuesday, Ebay revealed that it was trimming its staff by 4%, amounting to 500 positions being cut.
CEO Jamie Iannone revealed that, after carefully considering the global macroeconomic climate for the last few months, the company concluded that downsizing was the best option.
Why it matters:
The cuts will allow eBay’s ability to provide superior experiences for its clients according to Iannone, an argument that many other companies conducting layoffs have made in recent months.
However, this explanation falls short on taking accountability of misguided decisions made across major companies during the pandemic. In fact, the bast majority of layoffs can be linked to one specific move: overhiring during pandemic-fueled demand.
How it’ll impact the future:
According to the release statement sent out by Iannone, the layoffs will give Ebay “additional space to invest and create new roles in high-potential areas — new technologies, customer innovations and key markets — and to continue to adapt and flex with the changing macro, ecommerce and technology landscape.”