eBay (EBAY) is cutting approximately 800 jobs, or roughly 6% of its global workforce, as the e-commerce company realigns its structure around long-term strategic priorities. The San Jose-based company confirmed the layoffs Thursday, marking its third round of job cuts in three years.
The cuts come just days after eBay announced on Feb. 18 a $1.2 billion deal to acquire Depop, the secondhand fashion app popular with Gen Z shoppers, from Etsy. Shares rose more than 3% Thursday as investors cheered the cost discipline move.
When TheStreet reached out to eBay for comment, a company spokesperson said: “We are taking steps to reinvest across our business and align our structure with our strategic priorities, which will affect certain roles across our workforce. We are grateful for the contributions of the employees impacted and are committed to supporting them with care and respect.”
More Retail:
- Costco sees major shift in member behavior
- Retail chain shuts all locations as legal changes hit industry
- Lululemon struggles to reverse concerning customer behavior
On background, the spokesperson confirmed the cuts include the elimination of approximately 800 roles globally, or an estimated 6% of employees, adding that eBay is continuing to hire in priority areas aligned with its strategy. Employees were notified Wednesday.
eBay layoffs: what is driving the third round of cuts
This is not eBay’s first rodeo with restructuring. The company cut 1,000 jobs, or about 9% of its workforce, in January 2024, with CEO Jamie Iannone citing labor costs that had outpaced revenue growth. Before that, it eliminated about 500 roles, or 4% of staff, in February 2023 as consumer spending cooled after the pandemic online shopping boom.
Thursday’s round reflects a deliberate pivot rather than financial distress. The cuts spread across the company and were driven by operating model needs, areas of duplication, and alignment to future priorities. The Depop acquisition brought redundancies in marketing, growth, and technology teams that management is now addressing.
Key reasons behind the restructuring
- Acquisition overlap. Depop teams duplicate several eBay marketing and growth functions, creating natural consolidation opportunities across both platforms.
- AI automation. Customer service and support roles are shifting to AI-powered tools and offshore centers in India and Ireland.
- Niche focus. Capital is being redirected toward collectibles, secondhand fashion, and auto parts, the three categories where eBay holds a structural edge over Amazon and Temu.
- Cost discipline. Labor expenses have outrun revenue growth for three consecutive years, squeezing margins that management is now working to recover.
eBay earnings show strength despite the job cuts
The layoffs are not a sign of a struggling business. eBay’s Q4 2025 earnings showed revenue rising 15% year over year to $3 billion, beating analyst expectations. Gross merchandise volume climbed 10% to $21.2 billion, and the company returned $756 million to shareholders in the quarter alone.
Full-year 2025 revenue hit $11.1 billion, up 8% from the prior year. The board also authorized an incremental $2 billion stock repurchase program and raised its quarterly dividend 7% to $0.31 per share. Free cash flow of $478 million in Q4 comfortably covers the Depop deal’s financing needs.
The savings from the layoffs are expected to fund accelerated investment in AI seller tools, offsite advertising technology, and the collectibles and fashion categories where eBay commands premium fees and loyal buyer bases. Past restructurings have delivered results. The 2023 cuts lifted margins by 200 basis points, and the 2024 reductions fueled 12% earnings-per-share growth.
What the Depop deal means for eBay’s future
The $1.2 billion Depop acquisition is central to understanding why these cuts are happening now. Depop brings 35 million users focused on streetwear, vintage, and thrifting, a demographic eBay has struggled to attract on its own. The deal is expected to close in the second quarter of 2026, pending regulatory approvals.
eBay CEO Jamie Iannone has consistently framed the company’s strategy around three durable niches: collectibles, secondhand fashion, and auto parts. These categories resist Amazon’s price war playbook and the discount flood from Temu and Shein because they depend on authenticity, curation, and trust, areas where eBay’s auction heritage still matters.
Risks investors should watch
- Integration execution. Cultural clashes between eBay’s corporate structure and Depop’s startup DNA could slow the combined platform’s momentum heading into 2026.
- AI dependency. Replacing human support roles with chatbots carries real risk if the tools underperform, particularly in high-value collectibles transactions where buyers expect white-glove service.
- Macro headwinds. A recession would hit discretionary secondhand spending hard, exactly the category eBay is doubling down on with the Depop bet.
For now, Wall Street is giving eBay the benefit of the doubt. Buy ratings dominate Street coverage, and the stock trades at roughly 13 times forward earnings, a steep discount to peers like Shopify. The combination of cost discipline, a rising dividend, and a credible niche strategy gives long-term investors plenty to work with, if management can execute.
