Exclusive Report - Internal memo shows eBay will lay off 9% of staff to drive operational simplification

Jaspreet Singh/Aditya Soni

Reuters, October 21 - eBay (EBAY.O) CEO Jamie Iannone told employees in a memo reviewed by Reuters that the online marketplace will cut about 9% of its workforce as it seeks to streamline operations and shift resources to its fastest-growing areas.

An eBay spokesperson confirmed the layoffs to Reuters on Wednesday.

As part of its streamlining efforts, the company also laid off about 6% of its employees, or 800 people, in February this year (link).

eBay has set itself apart by expanding into certified luxury goods, collectibles, and refurbished products, categories that attract enthusiasts willing to pay higher prices for valuable items. This has driven the company's stock up nearly 40% this year, outperforming the benchmark S&P 500 index, which rose about 12%.

“Our strategy is working,” Iannone said in a memo, adding, “To continue to seize the significant opportunities ahead, we must make thoughtful choices about our areas of focus and investment.”

He said that affected employees will receive notifications in the coming days.

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

This helped eBay set its third-quarter revenue outlook above Wall Street estimates when it reported its latest financial results in August. The company plans to release new results next week.

These moves also caught the attention of GameStop (GME.O) CEO Ryan Cohen, who in May made an unsolicited $56 billion buyout offer for eBay, a company much larger than GameStop. eBay previously rejected the offer, calling it “neither credible nor attractive.”

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