E-commerce giant eBay has announced plans to lay off 500 employees globally

eBay announced on Tuesday that it will lay off 500 employees worldwide, representing 4% of its global headcount. The company said the staff cuts are part of an effort to improve operational efficiency. Affected employees will be notified shortly.

This change will give Ebay additional room to invest and create new functions, focusing on high potential areas such as new technologies, customer innovations and key markets. According to Jamie Iannone, Ebay's chief executive, change will provide the company better growth opportunities.

US companies, including Goldman Sachs and Alphabet, have laid off thousands of employees this year because of the demand slowdown caused by high inflation and rising interest rates. The companies' decision was an effort to maintain profits and reduce operating costs.

Why are tech giants laying off in droves? 

Dell has announced that it will make massive layoffs of 6.650 workers, mainly in the sales area, as part of its plan to reduce costs and improve its finances.

A Dell announced a resignation in bulk of 6.650 employees, as part of an effort to reduce costs after the company recorded a 37% drop in PC sales in the last quarter of 2022. The news was reported by Bloomberg, which said that the company issued an official statement on the decision.

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The manufacturer decided to adopt a proactive stance to deal with global economic challenges, which include cutting costs, limiting work travel, reducing expenses with external services and a halt in hiring new people. 

This attitude has objective to keep the company financially stable and minimize the negative impacts of the crisis. Dell, Spotify and Google made massive layoffs of employees due to the economic crisis. These technology companies had to cut thousands of employees to reduce costs and remain competitive in the market.

The pandemic has brought big changes to the way people work and communicate. Working from home has become necessary for many workers, which has resulted in an increase in the purchase of equipment, especially computers and mobile devices. However, there has not been as much turnover of existing equipment, which has driven up device prices in the market.

A Dell has struggled with slumping sales of PCs, as around 55% of the company's revenue comes from this segment. However, Jeff Clarke, vice president and co-chief operating officer of Dell, believes that this circumstance can be reversed and the company will come back stronger after going through other previous crises.