E-commerce company eBay (NASDAQ:EBAY) is laying off nearly 500 employees, joining several tech companies that are reducing their headcount due to macroeconomic pressures. In a message to the employees on Wednesday, CEO Jamie Iannone stated that the company will be removing about 4% of its workforce “over the next 24 hours.”
“Today’s actions are designed to strengthen our ability to deliver better end-to-end experiences for our customers and to support more innovation and scale across our platform,” said Iannone. He further added that the company’s initiatives would help it in expanding its Focus Categories and invest in new technologies.
Iannone further said that the company’s actions would allow it to invest and create new jobs in high-potential areas like “new technologies, customer innovations and key markets.” eBay is also simplifying its structure to ensure that decisions are made more effectively and faster.
eBay’s revenue declined in the first three quarters of 2022 as customers cut down their discretionary spending, especially through e-commerce channels. Also, customers shifted their spending to experiences like traveling following the reopening of the economy. eBay is scheduled to announce its Q4 earnings on February 22. Analysts expect the company’s revenue to fall about 6% to $2.46 billion and adjusted EPS to increase about 1% to $1.06.
Is EBAY a Good Stock to Buy?
Wall Street is sidelined on eBay stock, with a Hold consensus rating based on three Buys, four Holds, and one Sell. The average EBAY stock price target of $46.29 implies a possible downside of 7.7% from current levels. Shares have advanced 19% since the start of 2023.