Exclusive report – Internal memo shows eBay will lay off 9% of staff to streamline operations

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Jaspreet Singh/Aditya Soni

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

An eBay spokesperson confirmed the layoffs to Reuters on Wednesday.

Based on eBay’s workforce of 12,300 employees at the end of last year, this move will eliminate about 1,100 positions. As part of streamlining operations, the company also laid off about 6% of its staff, or 800 employees, this February (link).

eBay has set itself apart in the competition by expanding into certified luxury goods, collectibles, and refurbished products, items that attract enthusiasts willing to pay more for valuable goods. This has boosted its share price nearly 40% this year, outperforming the benchmark S&P 500’s gain of about 12%.

"Our strategy is working," Iannone said in a memo, adding, "To keep seizing the tremendous opportunities ahead, we have to make thoughtful choices about our business priorities and where we invest."

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

eBay’s share price fell 1.8% in premarket trading.

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This year, the company also benefited from its $1.4 billion acquisition of fashion resale platform Depop, a move that expanded its influence among younger consumers and strengthened its presence in the fast-growing secondhand market.

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

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

(To make its reporting accessible to non-native English speakers, Reuters provides its articles automatically translated into several other languages. Since automated translations may contain errors or lack necessary context, Reuters does not guarantee the accuracy of the translated text and provides it solely for readers’ convenience. Reuters is not responsible for any damage or loss caused by the use of automated translation features.)