E-commerce giant eBay has recently disclosed that it will be laying off around 500 employees, which constitutes nearly 4% of its total workforce, in a bid to create space for investing in high-growth areas. This move comes in the wake of a similar trend followed by various tech companies that had to downsize their workforce due to the pandemic and its subsequent impact on share prices. The massive growth followed by a sharp decline in share prices was experienced by big tech names such as Dell, Meta, Google, and Spotify.
eBay also faced the brunt of the pandemic-induced market turmoil, with its share prices plummeting to half the value is 2022, after touching an all-time high of $80.59 in 2021. However, the announcement of layoffs provided some respite as the share prices increased by around 1%. eBay CEO, Jamie Iannone, communicated the decision to the employees and said that this move will help eBay to allocate resources to new technologies, customer-centric innovations, and emerging markets that hold immense growth potential.