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E-commerce company eBayNasdaq: EBAY) is laying off about 500 workers, joining a number of tech companies that are cutting heads due to macroeconomic pressures. In a message to employees on Wednesday, CEO Jamie Iannone said the company will be eliminating 4 percent of its workforce “over the next 24 hours.”
“Today’s actions are designed to strengthen our ability to deliver better end-to-end services to our customers and support further innovation and scalability across the platform,” Iannone said. He said the company’s initiative will help it invest in new technologies while expanding its focus categories.
Iannone went on to say that the company’s operations allow it to invest and create new jobs in high-potential areas such as “new technologies, customer innovations and key markets.” eBay is streamlining its structure to ensure decisions are more efficient and faster.
In the first three quarters of 2022, eBay’s revenue declined as customers cut discretionary spending, particularly in e-commerce channels. Also, customers have shifted their spending toward experiences like travel following the reopening of the economy. eBay is scheduled to report its Q4 earnings on February 22. Analysts expect the company’s revenue to decline 6 percent to $2.46 billion and adjusted EPS to increase 1 percent to $1.06.
IS EBAY A GOOD STOCK TO BUY?
Wall Street is sideways on eBay stock, based on a consensus rating of three buys, four holds and one sell. EBAY’s average stock price target of $46.29 indicates a potential downside of 7.7% from current levels. Shares are up 19 percent since the start of 2023.
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