EBay is cutting about 1,000 jobs. In a memo Reuters reviewed, the online marketplace’s CEO, Jamie Iannone, told employees it plans to eliminate about 9% of its workforce as it simplifies operations and redirects resources to faster-growing businesses. The recent cuts follow another round of layoffs in February, when EBay dismissed about 800 employees, representing 6% of its workforce. The company had 12,300 employees at the end of last year, before its two rounds of workforce reductions. To distinguish itself from larger online retailers, EBay is focusing on categories where product condition, authenticity, and scarcity influence purchasing decisions. Its authentication services matter most for luxury goods, sneakers, and collectables, where buyers may worry about counterfeits. That strategy has helped Ebay shares gain nearly 40% this year, compared with about a 12% increase in the S&P 500. Its stock rose about 1% in early trading after the layoffs were confirmed. The reductions are intended to simplify operations and shift spending toward faster-growing areas. However, Ebay has not provided a detailed breakdown of which teams or locations will be most affected. Ebay has also expanded its position in the resale market through its $1.4 billion acquisition of fashion platform Depop. GameStop CEO Ryan Cohen made an unsolicited $56 billion offer in May.
The company’s spokesman also confirmed the latest planned layoffs and said affected employees should expect to receive notifications in the coming days. The deal gave the company greater access to younger shoppers and increased its exposure to re-commerce, the resale of previously owned products. The company’s recent performance allowed it to forecast third-quarter revenue above Wall Street estimates when it reported results in August.
The latest restructuring comes as the company focuses on authenticated luxury goods, collectables and refurbished products, categories that attract enthusiasts looking for valuable or harder-to-find items. In the memo, Iannone said, “Our strategy is working,” adding that “continuing to capture the significant opportunity ahead requires us to make thoughtful choices about where we focus and invest. His comments suggest EBay sees the layoffs as a reallocation of resources, not a change in its current strategy. It is scheduled to release its latest earnings next week. Ebay’s strategy has also attracted acquisition interest. Ebay rejected the proposal, describing it as “neither credible nor attractive. You use AI every day. Now get your AI Quotient. Take the AIQ test.