Updated Version 1 - Exclusive Report: Internal memo shows eBay will lay off 9% of staff to promote operational streamlining

Added details in the second paragraph, updated stock price information in the seventh paragraph.

Jaspreet Singh/Aditya Soni

Reuters, October 21 - eBay (EBAY.O) CEO Jamie Iannone said in a memo to employees that the company will cut about 9% of its workforce, a move aimed at streamlining operations and reallocating resources towards its fastest-growing business areas. Reuters has reviewed the memo.

An eBay spokesperson confirmed the layoffs to Reuters on Wednesday, saying the move will cut around 1,000 positions.

As of the end of last year, the company had 12,300 employees. As part of the effort to streamline operations, the company also laid off about 6% of its workforce, or 800 people, in February this year (link).

eBay has stood out in competition by entering the certified luxury goods, collectibles, and refurbished products markets, which attract enthusiasts willing to pay a premium for valuable items. This has driven its share price up nearly 40% this year, outperforming the benchmark S&P 500 index’s rise of about 12%.

“Our strategy is working,” Iannone said in the memo, adding: “To continue seizing the significant opportunities ahead, we must make thoughtful choices about our business priorities and investment directions.”

He said that affected employees will be notified in the coming days.

eBay’s stock price rose about 1% in early trading.

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This year, the company also benefited from its $1.4 billion acquisition of fashion resale platform Depop, which expanded its influence among younger consumers and solidified its position in the fast-growing secondhand goods market.

This helped eBay set its third quarter revenue forecast above Wall Street expectations when it reported last quarter’s earnings in August. The company plans to release its latest financial report next week.

These moves have also drawn attention from GameStop (GME.O) CEO Ryan Cohen, who in May launched a $56 billion unsolicited takeover bid for eBay, whose scale is far greater than GameStop. eBay previously rejected the bid, calling it “neither credible nor attractive.”

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