EBay stock gained in early trading Wednesday, before easing back, after the e-commerce company announced plans late Tuesday to lay off 9% of its staff, or roughly 1,000 jobs.
EBay Chief Executive Jamie Iannone disclosed the plan in a letter to employees on Tuesday. "Our overall head count and expenses have outpaced the growth of our business," Iannone wrote.
The 28-year-old company needs to be "more nimble" and make decisions quickly, Iannone added.
EBay Stock: Latest Tech Industry Layoffs
Meanwhile, eBay's announcement is the latest in a series of technology industry layoffs to start the year. Alphabet, Amazon and, most recently, SAP have also made job cuts.
In December, eBay's e-commerce rival Etsy cut 11% of its staff, citing macroeconomic uncertainty and competition.
Both eBay and Etsy are battling for share with e-commerce giants Amazon and Walmart. Further, Chinese e-commerce firms Shein and Temu, which is owned by PDD Holdings, have quickly gained U.S. market share.
In November, eBay stock fell after the company cautioned that inflation would hurt sales for the holiday quarter. The company has not announced a date for its fourth-quarter earnings report.
On the stock market today, eBay stock closed a half-percentage higher at 41.61. Shares were up as much as 4% in early trading. Last year, eBay stock gained 5%, compared to a 24% increase for the S&P 500.
