Ebay is laying off 800 employees—roughly 6 percent of its staff—a week after announcing its $1.2 billion acquisition of secondhand clothing app Depop and reporting “very strong” fourth-quarter revenue of nearly $3 billion.
“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,” a spokesperson for the online marketplace said in a statement first reported by Bloomberg on Thursday. “We are grateful for the contributions of the employees impacted and are committed to supporting them with care and respect.”
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The San Jose, Calif.-based company’s latest cut, which affected multiple departments, marks its third round of layoffs in three years. In early 2024, eBay let go of about 1,000 workers, or 9 percent of its workforce, citing staffing and expenses that had outpaced growth and a need to be more “nimble” in a challenging economic environment. The year before, the e-commerce platform eliminated 500 jobs, or about 4 percent of its personnel, after online spending slackened post-pandemic.
About one-third of the affected roles were in the Bay Area, according to a Worker Adjustment and Retraining Notification notice, including 243 layoffs at eBay’s San Jose headquarters and 28 at its San Francisco office in the South of Market neighborhood. As of Dec. 31, 2025, eBay had 12,300 employees worldwide, its latest annual filing said.
The move mirrors similar headcount reductions at companies such as Amazon, Block, HP, Pinterest and WiseTech Global as they seek to operate leaner and more efficiently with AI.
Ebay has made no secret of its AI ambitions, either, rolling out a slew of features in 2025, including an OpenAI-powered shopping agent that provides real-time product recommendations, an automated feedback generator for sellers and expanded “magical” listing tools that automatically generate detailed product descriptions and shipping costs.
In the company’s earnings statement last Wednesday, CEO Jamie Iannone credited the “strength of our strategy and disciplined execution”—including the use of AI—for making 2025 a banner year with $21.2 billion in gross merchandise volume, up 10 percent on an as-reported basis from the year before.
“We have built significant momentum across our strategic priorities, delivering meaningful growth and reinforcing our leadership in re-commerce,” he said. “As we continue to harness AI to elevate the customer experience worldwide, eBay is in the strongest position it has been in years.”
