EBay is to lay off 1,000 employees — 9% of its full-time workforce — a move CEO Jamie Iannone attributed to headcount and expenses outpacing business growth.

The San Jose, California-based company is also planning to reduce the number of contractors working with the company.

“While we are making progress against our strategy, our overall headcount and expenses have outpaced the growth of our business,” EBay president and CEO Jamie Iannone wrote in a letter to employees on Tuesday.

“To address this, we’re implementing organizational changes that align and consolidate certain teams to improve the end-to-end experience and better meet the needs of our customers around the world.”

EBay would soon notify the affected employees, Iannone added. “These changes are difficult, but I’m confident that by working together we will become stronger than ever. In the months ahead, you will see a more focused, agile, and responsive eBay — one that is better positioned to advance our purpose of creating economic opportunity for all.”

The employee restructuring expected by the end of the second quarter of 2024 will cost an estimated $90 million to $110 million on account of severance payments and post-employment benefits, EBay noted in a news release.

The e-commerce company earned net income of $1.3 billion U.S. from continuing operations on revenue of $2.5 billion during the three months to September 2023.

Earlier this month, EBay admitted to six felonies and agreed to pay a $3.0 million penalty in a cyberstalking case.

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