eBay announced Thursday that it will lay off roughly 800 employees, representing about 6% of its global workforce, as part of a broader effort to realign the company around strategic priorities and growth initiatives. The move comes amid eBay’s ongoing investment in artificial intelligence, the acquisition of Etsy’s resale app Depop, and a push to strengthen key product categories such as fashion, collectibles, car parts, and refurbished goods.
An eBay spokesperson said the layoffs, which span multiple teams across the organization, were driven by the need to optimize the company’s operating model, eliminate duplication, and focus resources on high-priority areas. “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,” the statement said. “We are grateful for the contributions of the employees impacted and are committed to supporting them with care and respect.”
As of December 31, 2025, eBay employed about 12,300 people worldwide. The latest reductions follow a period of targeted workforce adjustments in recent years, which have coincided with heavy investments in artificial intelligence tools aimed at improving both internal operations and buyer-seller experiences on the platform. The company has also partnered with OpenAI to integrate agentic web browsing and AI-driven features, reflecting its ambition to stay competitive with rapidly growing rivals such as Amazon, Walmart, and newer online marketplaces like TikTok Shop, Temu, and Shein.
CEO Jamie Iannone highlighted that eBay’s recent acquisition of Depop, a secondhand clothing marketplace with a predominantly under-34 user base, will enhance the company’s presence in fashion—a category that has emerged as one of eBay’s fastest-growing sectors. The Depop deal, valued at approximately $1.2 billion in cash, is expected to provide eBay with a stronger foothold in the resale market and attract a younger demographic to its platform.
“Depop allows us to grow in fashion while leveraging our focus categories, which include collectibles, car parts and accessories, and refurbished goods,” Iannone said. eBay’s fourth-quarter earnings report last week indicated that gross merchandise volume from these focus categories grew over 16% year-over-year, signaling that the company’s strategy to prioritize high-growth segments is already yielding results.
The layoffs occur against the backdrop of eBay’s recent settlement with a Massachusetts couple who had been harassed by former employees, a case dating back to 2021. While unrelated to the workforce reduction, the settlement underscores the company’s ongoing efforts to address reputational and operational risks while maintaining focus on business transformation.
Analysts say the combination of targeted layoffs, acquisitions, and AI investments positions eBay to compete more effectively in the increasingly crowded e-commerce landscape. By streamlining its workforce and investing in technology and strategic acquisitions, the company aims to enhance efficiency, accelerate growth, and appeal to younger, digitally native consumers.
The move also reflects broader trends in the tech and e-commerce sectors, where companies are increasingly balancing cost optimization with innovation. As consumer preferences evolve and competition intensifies, eBay is betting that a leaner, AI-driven organization combined with investments in growth areas like fashion and resale will allow it to stay relevant and profitable in a market dominated by larger, faster-growing rivals.
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With the Depop acquisition expected to close later this year, and AI technologies increasingly integrated into the platform, eBay’s leadership remains focused on long-term transformation, aiming to align operations with strategic priorities and meet the demands of a new generation of online shoppers.
