Activist investor Ryan Cohen has proposed a massive takeover of eBay Inc. (NASDAQ:EBAY), signaling that severe cost-cutting and layoffs could be on the horizon for the e-commerce giant if his ambitious bid succeeds.

Case Against Overhead

Cohen sharply criticized the company's current operating structure during a recent interview with TBPN, explicitly targeting its large workforce and bloated budget.

“They’re spending $5.5 billion on operating expenses on an $11 billion business that has no inventory, and it’s asset light,” Cohen stated. Pointing to the massive employee roster, he added, “There are 11 and a half thousand employees, and it doesn’t make sense. I could run that business from my house.”

Drawing from his experience slashing $800 million in SG&A (Selling, General, and Administrative) expenses at GameStop Corp. (NYSE:GME), Cohen intends to apply the same aggressive restructuring to eBay to pay down acquisition debt and rapidly increase earnings.

"There's 11,500 employees. It doesn't make sense. I could run that business from my house. It's eBay, it looks the same as it did in 1995. It doesn't need 11,500 employees."$GME's @ryancohen makes his case for why he's the best person to buy eBay:

"You look at eBay spending… pic.twitter.com/nHsHc7xhrr

— TBPN (@tbpn) May 5, 2026

Shifting To ‘Startup Mode’

Acknowledging the inspiration drawn from Elon Musk's sweeping cuts at X (formerly Twitter), Cohen argued that heavily reducing headcount is essential for accelerating innovation.

“The more people you add, the more you slow things down, and the fewer people you have, the more it’s like a startup,” he explained.

He stressed that tech platforms must “always be in startup mode,” arguing that eBay’s bloated corporate structure breeds “perverse incentives” and protects jobs that aren’t generating real revenue.

A $28 Billion Overhaul

The proposed buyout offers existing shareholders $125 a share—half in cash and half in stock—representing a 40% premium from when Cohen began purchasing the stock. To execute his vision, Cohen plans to eliminate wasteful marketing spend and transform the company’s culture.

He heavily criticized current management for lacking a “sense of urgency,” noting that executives treat equity “like candy” while securing lucrative board fees without personal financial stakes.

Ultimately, Cohen says he wants to run the resilient, decades-old platform like a highly efficient “family business,” cutting the corporate fat to expand aggressively into live commerce and collectibles. If successful, the deal would reshape one of the internet’s oldest marketplaces by prioritizing lean operations over bloated corporate overhead.

How Has EBAY Performed In 2026?

Shares of EBAY have advanced by 20.85% year-to-date, while the Nasdaq Composite has advanced by 9.00% over the same period. It closed 3.27% lower on Tuesday at $105.26 apiece.

Over the last month, EBAY was up 11.81% and higher by 29.93% over the last six months. Benzinga’s Edge Stock Rankings indicate that EBAY maintains a strong price trend in the short, medium, and long terms, with a good quality score.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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