EBay Inc (NASDAQ:EBAY) shares are trading higher on Thursday even as the company announced it will cut about 800 jobs, roughly 6% of its full‑time workforce, as part of an effort to realign staffing with its strategic priorities. Here’s what you may want to know.
Reason Behind The Job Cuts
EBay said the job cuts are intended to streamline operations and shift resources toward areas that support long‑term growth, Bloomberg reported. The company said it plans to reinvest across the business and reshape teams so they're better aligned with its long‑term strategy.
Third Round Of Layoffs In Recent Years
This marks eBay's third round of workforce reductions in three years. In early 2024, the company cut about 1,000 jobs — around 9% of its staff — after labor costs outpaced growth. A year earlier, in early 2023, eBay eliminated about 500 roles, or roughly 4% of its workforce, as consumer spending cooled following the pandemic‑era surge in online shopping.
The restructuring news comes just a week after eBay reported a strong fourth quarter and announced plans to acquire Depop, a secondhand fashion marketplace popular with younger shoppers, for about $1.2 billion.
Technical Indicators Show Bullish Momentum
EBay is currently positioned above its key moving averages, which suggests a bullish sentiment in the market. The stock is trading 1.7% above its 20-day SMA, 0.1% above its 50-day SMA and 0.8% above its 100-day SMA, indicating a potential for continued upward momentum.
With an RSI of 47.29, eBay is in neutral territory, meaning it isn’t currently overbought or oversold, suggesting that there could be room for further price movement in either direction. MACD is above its signal line, indicating bullish momentum for eBay. Traders might see continued strength in the stock, especially if it can maintain this position.
Key support sits at $81.00, while resistance is at $97.50. If eBay’s stock tests the support level and holds, it could signal a potential reversal or continuation of the current trend, while a breach of resistance may lead to a new upward phase.
eBay has shown a long-term bullish trend, with the 50-day SMA above the 200-day SMA, indicating strength in the overall trend. This relationship suggests that traders should remain optimistic about the stock’s longer-term prospects.
Over the past 12 months, eBay’s stock has gained 27.55%, reflecting a strong recovery and positive market sentiment. This performance indicates that the stock has been able to capitalize on favorable conditions, setting a solid foundation for future growth.
EBAY Price Action: EBay shares were up 3.38% at $88.21 at the time of publication on Thursday, according to Benzinga Pro.
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