American e-commerce company E-bay is the most recent one to join the list of companies which have decided to engage in mass layoffs. According to the latest updates, the company is sacking 500 employees. This has in turn impacted 4 per cent of its workforce.
According to company’s chief executive officer (CEO), the decision to lay off employees was taken to create new roles and more investment opportunities. "This shift gives us additional space to invest and create new roles in high-potential areas - new technologies, customer innovations and key markets," Reuters quoted Jamie Iannone, CEO, Ebay in a message to employees.
Additionally, the layoffs will help the leading e-commerce firm to improve its customer experience and focus on the areas where it makes the most impact, reported CNBC. The company’s CEO also reportedly said that they are making changes in order to work more effectively and steadily.
Interestingly, the company's share shot up by 1 per cent in after-market trade.
In the spill-over effect of mass layoffs, many tech companies like Microsoft, Amazon and Google have let go off thousands of its employees. Similarly, on the Indian front, major IT companies like Wipro and Infosys have laid off hundreds of their new recruits. Apart from this, tech companies like Pinterest, Zoom and Tinder have also let go of many employees to keep the costs in check.
At the time of writing this story, according to Layoffs.fyi, 313 tech companies have handed pink slips to 97,520 employees in 2023. As understood, the mass layoffs are due to a global economic slowdown and so, as a measure to curb the over-hiring done during the Covid-19 pandemic, companies re indulging in it.