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Key Takeaways
- eBay shares traded higher after the e-commerce retailer said it plans to cut 1,000 jobs, or roughly 9% of its workforce.
- CEO Jamie Iannone told employees in a letter that the company’s headcount had outpaced the growth of the business.
- eBay’s stock price has traded within a descending channel since early June, with the pattern’s upper and lower trendlines marking key support and resistance areas.
eBay Inc.
Source: TradingView.com
Shares of online marketplace platform eBay (EBAY) gained nearly 3% ahead of Wednesday’s open after the company announced on Tuesday that it intends to reduce its headcount by 1,000 roles, equating to roughly 9% off its workforce.
“While we are making progress against our strategy, our overall headcount and expenses have outpaced the growth of our business,” eBay CEO Jamie Iannone said in a letter to staff. Iannone also said the e-commerce retailer plans to reign in contractors who are part of its alternative workforce.
Affected staff members will be relayed the news via Zoom (ZM) and enter into a consultation process where required. The job losses at eBay come roughly 12 months after the company shed 500 roles across its global workforce and follow layoffs at other tech giants, including Google (GOOGL) and Amazon (AMZN), with many companies in the sector scaling back after a hiring spree during the pandemic.
Shares of eBay have oscillated within a descending channel since early June, establishing clear mean reverting areas on the chart. If the stock moves up from these levels, the $43 region is where price could face a confluence of resistance from the channel’s top trendline and the 200-day moving average. Amid a move lower, buyers could potentially step up to the plate near the lower portion of the pattern that closely aligns with last year’s low around $36.
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