The e-commerce giant eBay (Nasdaq: EBAY) will undertake its second round of mass layoffs this year.
Yesterday, the popular online marketplace reportedly said it is preparing to lay off about 1,000 employees, or roughly 9% of its workforce. The additional layoffs, following a round of layoffs early this year, come at a time when eBay is in the middle of a strategic shift that has boosted its stock price.
What’s happened?
The CEO of eBay, Jamie Iannone, sent a memo to staff informing them that the company will lay off roughly 9% of its existing workforce, according to Reuters. An eBay spokesperson later confirmed the plans with Reuters, saying about 1,000 workers would lose their jobs.
Fast Company reached out to eBay for comment.
As of the end of last year, eBay had about 12,300 employees globally. In February, eBay laid off about 6% of its then-workforce, or about 800 positions.
The second round of layoffs confirmed this week is about 25% larger than the first round and comes at a time when the online marketplace is undergoing a strategic shift to help it better differentiate itself from its rivals.
eBay pivots to collectibles and second-hand luxury goods
eBay was one of the dotcom darlings of the early internet. The company brought the concept of online auctions to the masses and opened up a new way for ordinary people to easily sell their goods to make some extra cash.
But in the decades since eBay’s founding, many other platforms have arisen where third-party sellers can hawk their goods online. That competition, most notably from Amazon, has eaten into eBay’s popularity and its bottom line.
To help distinguish itself on this ever-more crowded scene, eBay lately has pivoted to focusing on being a marketplace for collectibles, second-hand luxury goods, and high-value refurbished products.
It’s a shift that Iannone says is paying off.
“Our strategy is working,” the CEO wrote in the layoff memo he sent to employees, Reuters reported.
But this strategic shift, along with investments in artificial intelligence and the acquisition of the fashion resale marketplace Depop earlier this year for $1.4 billion, has necessitated the need for cost reductions in the form of layoffs, in the company’s view.
“[C]ontinuing to capture the significant opportunity ahead requires us to make thoughtful choices about where we focus and invest,” Iannone told staff in the memo.
eBay stock surges in 2026
From an investor perspective, it’s hard to argue against Iannone’s claim that eBay’s strategic pivots are working.
In early August, eBay reported its results for its second quarter of fiscal 2026. The company said it generated $3.1 billion in revenue, up 15% year over year. Its net income was $552 million, up 51% year over year.
In 2026, Wall Street has rewarded eBay. Since the beginning of the year, EBAY has surged 41% as of yesterday’s closing price of $122.90, near an all-time high. For comparison, the tech-heavy Nasdaq 100 grew by just under 15% during the same period.
Investors will be paying attention next week when the company is scheduled to announce its Q3 2026 results on Wednesday.