A global ecommerce company says it has lost more than $7 million on investments in its platform and it is taking steps to close the losses.
Global ecommerce giant eBay announced on Thursday it will lay off 8,000 employees globally, bringing its total layoffs since it started selling online products in March to nearly 2,000.CEO Tony Soto said in a statement the cuts will affect approximately 500 staff worldwide and the company has announced a $12 million investment in its core business to offset some of the losses.
“While we are working to address the financial impacts on our customers, we cannot announce a final number for our full-year loss,” he said.
The layoffs will affect customers across the globe and will affect more than a dozen countries, including the U.K., Germany, France, Spain, Italy, the U-S., China and Russia.
A total of 3,000 of the laid-off employees will be redeployed to other roles.
Soto did not say how many of the employees were in the U, UK, Germany, Spain and France.
He said the company is now focusing on ways to create new positions, which are not impacted by the layoff, to provide for the loss of jobs.CEO Kevin Plank said in the statement that the company plans to rehire the employees who will be laid off as soon as possible.
“Our focus is to continue to grow our business as fast as possible,” he added.
The company’s shares have lost roughly 15 per cent of their value in the last week, with investors worried that the firm is likely to be forced to shut down, or cut back, on its investments.
The firm is not disclosing the number of employees affected.
The global e-commerce company is not alone in facing layoffs.
A number of other global companies have also announced cuts and layoffs as the e-tailer struggles to survive in a rapidly changing market.
Last month, the ecommerce business of online retailer Flipkart said it would cut its workforce by 20 per cent to around 400 staff as part of a restructuring.