EBay Inc (NASDAQ:EBAY) shares are climbing Wednesday. The online marketplace announced layoffs of its staff. Here’s what you should know.
- eBay shares are trending higher. Why is EBAY stock advancing?
EBay Cuts a Portion of its Workforce
EBay is trimming approximately 9% of its staff to streamline the business and redirect money to its quickest-expanding units, CEO Jamie Iannone told employees in a memo that Reuters reviewed. The company confirmed to Reuters on Wednesday that about 1,000 jobs will be cut. Notices to affected employees are due within days, according to Iannone.
Iannone wrote that “our strategy is working.” Seizing the large opportunity ahead means being selective about where eBay concentrates its effort and money, he added.
This is not the first reduction in 2026. February brought a smaller one, roughly 800 jobs or about 6% of the workforce, in an earlier streamlining effort. Together the two rounds remove about 1,800 jobs, close to 15% of the 12,300 people eBay employed at the end of last year.
Cost cuts often help a stock, and these may follow that pattern. With fewer employees, eBay should spend less, and spending that shifts toward faster-growing areas could lift profitability. Risks exist too. Repeating layoffs within a year may raise doubts about execution, and severance and other one-time costs usually come with them.
Analysts Weigh In On eBay
Wall Street is mostly positive on eBay. Analysts as a group say Buy, and their average price forecast is $116.55. Recent target changes include:
- Oct. 12: Morgan Stanley, Overweight, raised its target to $132.
- Oct. 12: Wells Fargo, Underweight, lowered its target to $91.
- Sept. 14: StoneX, Buy, raised its target to $136.
EBAY Shares Are Rises
EBAY Price Action: eBay shares were up 1.45% at $122.95 at the time of publication on Wednesday. The stock is trading near its 52-week high of $124.59, according to Benzinga Pro.
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