eBay, an American multinational e-commerce company, announced on Thursday that it’s eliminating about 800 jobs, or roughly 6% of its full-time workforce, in its third large round of layoffs since 2023.
The cuts come just days after eBay acquired Depop from Etsy for $1.2 billion in a move geared towards Gen Z-friendly secondhand fashion. The deal comes almost five years after Etsy bought Depop for roughly $1.62 billion, giving the online marketplace an edge into younger consumers who flocked to the U.K.-founded app to hawk their used clothing, shoes, accessories, and other goods. About 90% of Depop’s users are under the age of 34, Etsy said.
eBay, which just reported a 15% increase in fourth-quarter revenue, previously cut 500 jobs in 2023 and another 1,000 in 2024. It said the latest round is necessary to streamline operations and meet “strategic priorities.”
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Speaking on the recent job cut, the company’s 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.”
eBay has continued to trim its headcount in recent years, while at the same time spending more on artificial intelligence. Recall that in January 2024, the company announced plans to lay off 9% of its workforce, equal to about 1,000 full-time jobs. Jamie Iannone, eBay’s CEO, told employees in a letter that the company will also “scale back the number of contracts it has within its alternate workforce over the coming months.”
eBay shares surged by almost 8% in premarket U.S. trading on Thursday after the e-commerce giant reported better-than-expected fourth-quarter results, issued strong guidance, and announced plans to acquire fashion marketplace Depop from Etsy.
The online marketplace reported fourth quarter revenue of $3 billion, up 15% year-over-year and exceeding analyst expectations of $2.87 billion. Adjusted earnings per share came in at $1.41, beating the consensus estimate of $1.35. Gross merchandise volume (GMV) reached $21.2 billion, representing a 10% increase from the same period last year.
For the first quarter of 2026, eBay guided for revenue between $3 billion and $3.05 billion, above analyst expectations of $2.97 billion. The company expects adjusted earnings per share of $1.53 to $1.59, surpassing consensus estimates of $1.48.
“We have built significant momentum across our strategic priorities, delivering meaningful growth and reinforcing our leadership in recommerce,” CEO Jamie Iannone said in a statement.
The recent layoff comes as eBay has been aggressively integrating artificial intelligence (AI) into its platform since around 2023, leveraging technologies like generative AI, computer vision, natural language processing (NLP), and recommendation systems to enhance experiences for both sellers and buyers.
This push is part of a broader strategy to modernize the 30-year-old marketplace, streamline operations, boost personalization, and drive growth amid competition from platforms like Amazon and Etsy.
AI is woven into core functions such as listing creation, search, recommendations, social media integration, and customer support, with eBay deploying it at scale across 190 markets and 1.2 billion listings.
Notably, eBay’s AI initiatives have contributed to a post-pandemic resurgence, with CEO Jamie Iannone noting during earnings calls that they’ve transformed the platform by improving search efficacy, listing speed, and trust.
Outlook
Looking ahead, eBay appears poised to double down on AI-led efficiency and recommerce growth while integrating Depop to deepen its appeal among younger, mobile-first shoppers.
If execution stays on track, the company’s enhanced personalization, automated listing tools, and smarter search infrastructure could lift seller productivity and buyer conversion across its global marketplace.
Overall, eBay’s near-term trajectory points to disciplined cost management paired with aggressive technology investment.