As the country recovers from mandatory quarantines and shutdowns, the big tech industry has suffered multiple huge losses over the past three years. During that period, e-commerce sites and online marketplaces did quite well since they were not dependent on foot traffic.
When the economy recovered, though, many of these businesses had to lay off a large number of employees because they had to change their operations so drastically. Some companies had to cut payroll costs in order to stay afloat when Bidenomics failed.
Almost 10% of an online retailer’s staff was laid off lately as the company faced the music.
Another Big Tech Company Falls Victim to the Country’s Challenging Economic Times
On January 24, the Washington Times published a report discussing eBay’s decision to lay off around 1,000 full-time employees, or around 9% of the company’s total employment. The online retailer, following in the footsteps of Amazon and other Big Tech businesses, reported that payroll-related expenses had surpassed the company’s recent growth level.
EBay CEO Jamie Iannone confirmed that officials distributed a company-wide message telling workers that it would reduce the number of contracts they retain “within [EBay’s] alternate workforce over the [upcoming] months.”
In a Zoom meeting, Iannone said, employees would be informed of the company’s intention to lay them off. He added that on January 24, eBay ordered its workers to work remotely so that affected employees may discuss their upcoming layoffs in private.
The CEO maintained his positive outlook on eBay’s future. Workers will face immediate hurdles as a result of personnel losses and other company-wide adjustments, he admitted. Nonetheless, he was certain that the business will come out of it “stronger than ever.”
Those layoffs followed other unfortunate developments for eBay.
The Hits Keep Coming
The United States Attorney’s Office for the District of Massachusetts announced in a news release on January 11 that it has achieved a $3 million criminal penalty agreement with eBay in connection with a 2019 campaign of harassment and intimidation.
The online shop was hit with two charges of stalking using electronic communications services and interstate travel, according to federal authorities. Separate charges of witness tampering and obstruction of justice were also leveled against eBay.
According to court records, a number of eBay employees launched a terroristic campaign targeting a couple who ran a website that aimed to dominate the e-commerce market. According to Acting US Attorney Joshua Levy, the store “silencing their reporting” and engaging in “horrific, criminal conduct” caused the victims “pure hell.”
Levy further verified that seven ex-employees or contractors of eBay were convicted as a result of the investigation by the Justice Department. The alleged mastermind behind the campaign of intimidation and stalking was given a 57-month prison term.