eBay Trims 6% of Workforce to Fund Next-Gen Tech and Depop Integration

eBay announced on February 26, 2026, that it is cutting approximately 800 jobs, representing roughly 6% of its global workforce.

This marks the third consecutive year of significant layoffs for the San Jose-based e-commerce giant, following a 9% reduction in early 2024 and a 4% cut in 2023.

eBay Strategic Realignment Amidst Growth

The layoffs come at a seemingly paradoxical time for the company.

Just one week prior, eBay reported a robust financial performance for 2025, with full-year revenue reaching $11.1 billion—an 8% year-over-year increase.

Despite this growth, CEO Jamie Iannone stated that the reductions are necessary to “align our structure with our strategic priorities.”

The company is pivoting its resources toward high-growth areas, specifically artificial intelligence and “recommerce.”

By streamlining its traditional workforce, eBay intends to reinvest in AI-driven features for buyers and sellers, such as automated listings and enhanced customer support tools.

The Depop Acquisition and Gen Z Focus

The job cuts also follow eBay’s $1.2 billion cash acquisition of Depop, a secondhand fashion marketplace popular with Gen Z.

Analysts suggest that the layoffs may partly result from organizational redundancies created by the merger.

The acquisition is a cornerstone of eBay’s strategy to capture a younger demographic and solidify its leadership in the circular economy, even as it trims its core corporate staff.

Impact and Regional Shifts

While eBay has not officially detailed which departments are most affected, internal reports and employee posts on platforms like LinkedIn and Blind suggest the impact is widespread across the U.S., including offices in California, Texas, and Utah.

There are also unconfirmed reports that some roles are being shifted to lower-cost international hubs in India and Ireland as part of a broader “offshoring” effort to manage long-term labor costs.

In a statement, eBay expressed gratitude for the impacted employees’ contributions, promising to support them with “care and respect” through the transition.

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