Online commerce giant eBay announced sweeping layoffs on Tuesday, letting go of 1,000 employees – 9% of its workforce – in a cost-cutting move that underscores the Gathering economic storm clouds over the tech industry.

eBay’s job cuts come despite the company earning $1.3 billion in profits just last quarter – results President and CEO Jamie Iannone described in November as “another quarter of solid results.” But in a sober note sent to all employees, Iannone said those headline numbers masked problems beneath the surface that necessitated what he called “the most significant and toughest” decision to downsize.

“These are not actions we take lightly — and we recognize the impact they will have on all eBayers,” Iannone wrote. “We have to say goodbye to people who have made so many important contributions to the eBay community and culture, and this isn’t easy.”

All U.S. eBay employees were asked to work from home on Tuesday to “provide some space and privacy” to impacted workers as they learned their roles were being eliminated. The cuts targeted both full-time staffers and contractors.

It’s the second round of layoffs for eBay in the last year after cutting 500 jobs last February. The company has growth targets to hit, Iannone said, and expenses have been outpacing revenues. Trimming headcount by nearly 10 percent is expected to put eBay on a better financial footing to hit its goals.

The news comes amid a wave of job cuts across the entire tech sector to start 2024, even for companies not visibly struggling. Amazon, Wayfair, Duolingo, YouTube, and Google parent company Alphabet have all enacted major layoffs in January impacting more than 13,000 tech workers total so far, according to layoffs tracking site layoffs.fyi.

And analysts say more industry belt-tightening is likely still to come with recession fears looming. Interest rate hikes aimed at fighting inflation threaten to slow economic growth significantly this year. For tech companies, that could stall new spending by consumers and businesses alike – and mean even reliable giants like eBay need to cut back and brace for leaner times ahead.

The eBay layoffs mark a stark turnaround from the pandemic-fueled e-commerce boom that saw the company’s stock price hit record highs. It’s just the latest example that no tech giant feels fully insulated from the gathering economic storm clouds likely still yet to unleash their full fury. Tough times may still be ahead.