CEO Jamie Iannone announced the move in a memo sent to staff, which was seen by Reuters, and an eBay spokesperson confirmed the layoffs to Reuters, according to the report.
This round of layoffs follows one in February, when eBay laid off 6% of its workforce, or 800 employees, per the report.
The company’s shares have risen 40% this year as the online marketplace focused on more valuable items such as authenticated luxury goods, collectibles and refurbished products, and as it benefited from its $1.4 billion acquisition of fashion resale platform Depop, the report said.
Iannone said in the memo to staff that the company’s strategy is working and that to capture opportunities, eBay must “make thoughtful choices about where we focus and invest,” per the report.
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PYMNTS reported in August that eBay’s second-quarter earnings results showed that the company’s efforts to reposition its marketplace around specialized categories, seller tools and higher-margin services was beginning to produce broader growth.
During the quarter ended June 30, eBay saw year-over-year growth of 15% in revenue, which hit $3.13 billion, and 15% in gross merchandise value, which reached $22.4 billion.
The company has concentrated investment in luxury goods, collectibles, refurbished products and automotive parts, all of which are categories where buyers often need authentication, detailed product data or expert pricing before making a purchase, the report said.
EBay will have its third-quarter earnings call on Oct. 28.
When eBay completed its acquisition of Depop in July, the company said that Depop will retain its distinct brand, platform, customer experience and culture, while benefiting from eBay’s global scale and capabilities in shipping, personalization, compliance and trusted services.
Iannone said in a July 30 press release that the acquisition “further strengthens our [consumer-to-consumer] value proposition” and “expands our reach with the next generation of buyers and sellers.”
GameStop announced in August that it converted a previously disclosed derivative position tied to eBay into a direct equity investment and held about 43.4 million eBay shares that were worth about $4.95 billion. That move followed eBay’s rejection of GameStop’s $56 billion acquisition proposal.
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