EBay said Tuesday that it plans to lay off 9% of the company’s workforce, equal to about 1,000 full-time jobs, as the tech industry continues to downsize to start 2024. The stock rose more than 3% in extended trading.

Jamie Iannone, eBay’s CEO, told employees in a letter published on a corporate blog, that the company will also “scale back the number of contracts we have within our alternate workforce over the coming months.”

Iannone said the job cuts are necessary because eBay’s “overall headcount and expenses have outpaced the growth of our business.”

“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,” Iannone said. “Shortly, we will begin notifying those employees whose roles have been eliminated and entering into a consultation process in areas where required.”

Following hefty job cuts last year, tech companies have continued to eliminate positions in January as concerns about consumer and business spending persist. Amazon, Alphabet and Unity have confirmed cuts this month, and SAP said on Tuesday that it aims to carry out voluntary buyouts or enable job changes for 8,000 employees as part of a restructuring program for 2024.

Regarding eBay’s cuts, Iannone said he wants employees to work from home on Jan. 24, “to provide some space and privacy for these conversations.”

“These changes are difficult, but I’m confident that by working together we will become stronger than ever,” Iannone said. “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.”

EBay shares dropped about 4% in November after the company provided fourth-quarter revenue guidance that trailed Wall Street estimates. During a call with analysts, Iannone said that eBay had “observed softening consumer trends to date in Q4, and particular challenges in Europe, suggesting we may see a more muted seasonal uptick over the holidays.”

He added that “Inflationary pressures and rising interest rates continue to weigh on consumer confidence and pressured demand for discretionary goods.”

Earlier in January, eBay said it would pay a $3 million criminal penalty as part of a settlement related to a cyberstalking and harassment campaign conducted by a group by former employees.