eBay Unveils 6% Workforce Cut of 800 Jobs; Shares Jump Over 3%
eBay plans to cut 800 jobs, about 6% of staff, marking its third workforce reduction in three years after 1,000 and 500 cuts in 2024 and 2023. Shares rose over 3% as the stock trades 1.7% above its 20-day SMA with a bullish 50/200-day SMA crossover and 27.6% 12-month gain.
1. eBay Announces 800 Job Cuts
eBay will eliminate approximately 800 full-time positions, representing 6% of its global workforce, to realign staffing with strategic priorities. The company intends to reinvest savings into growth initiatives and reshape teams to support long-term objectives.
2. Market Reaction and Technical Indicators
Shares climbed more than 3% on the announcement, trading 1.7% above the 20-day SMA, 0.1% above the 50-day SMA and 0.8% above the 100-day SMA. A bullish 50/200-day SMA crossover, neutral RSI near 47 and MACD above its signal line point to potential further upside.
3. Historical Layoff Context
This marks eBay’s third round of layoffs in three years, following cuts of about 1,000 roles (9%) in early 2024 and 500 roles (4%) in early 2023 as labor costs outpaced growth and consumer spending normalized.
4. Strategic Focus and Depop Acquisition
The restructuring follows a strong fourth quarter performance and precedes eBay’s planned $1.2 billion acquisition of Depop, a secondhand fashion marketplace aimed at capturing younger shoppers and diversifying revenue streams.