eBay layoffs: Online marketplace to cut 1,100 jobs as it reshapes operations

eBay plans to cut around 9% of its workforce as the online marketplace looks to simplify its operations and direct resources towards its fastest-growing businesses, according to a memo from CEO Jamie Iannone reviewed by Reuters.

The layoffs could affect around 1,100 employees, based on eBay's workforce of 12,300 at the end of last year. The company had also reduced its workforce by about 800 employees, or 6%, in February as part of an earlier restructuring effort.

eBay has focused on authenticated luxury products, collectibles and refurbished goods to attract buyers willing to spend more on valuable items. Its shares have gained nearly 40% this year, compared with an increase of around 12% in the S&P 500.

In his memo to employees, Iannone said the company's strategy was delivering results but added that it needed to make careful decisions about where to concentrate its investments to pursue future growth.

"Our strategy is working," Iannone said in the memo, adding that "continuing to capture the significant opportunity ahead requires us to make thoughtful choices about where we focus and invest."

Employees affected by the latest cuts will be informed in the coming days, he said.

eBay has also strengthened its position in the resale market through its $1.4 billion acquisition of fashion resale platform Depop this year. The deal expanded its reach among younger consumers and added to its presence in the second-hand goods market.

The company forecast third-quarter revenue above Wall Street estimates when it reported its previous results in August. It is scheduled to announce its latest earnings next week.

Meanwhile, eBay has attracted interest from GameStop CEO Ryan Cohen, who made an unsolicited $56 billion bid for the company in May. eBay rejected the proposal, describing it as neither credible nor attractive.

eBay shares were down 1.8% in premarket trading.

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