eBay is cutting hundreds of roles as it reshapes its business for the next phase of growth.
The company confirmed Thursday it will lay off about 800 employees, representing roughly 6% of its full-time workforce. The company had about 12,300 employees globally as of Dec. 31, 2025, according to its latest annual filing.
“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 company said in a statement. “We are grateful for the contributions of the employees impacted and are committed to supporting them with care and respect.”
While the company is letting go of 800 people, it indicated that hiring will continue in key areas, specifically those that align with its long-term goals.
The timing of the layoffs is particularly notable. Last week, eBay revealed it was buying Depop from Etsy for $1.2 billion in cash, a move aimed at capturing the hearts (and wallets) of shoppers under 34. This acquisition is a clear play for the recommerce market, which is expected to balloon to over $500 billion by 2034, according to Global Market Insights.
Financially, eBay appears to be on solid ground. The company’s 2025 full-year revenue hit $11.1 billion, an 8% increase from the previous year. Furthermore, its fourth-quarter revenue rose 15% to $3 billion, beating out analyst expectations. Despite this growth, management seems determined to keep labor costs from outstripping expansion.
In early 2024, the company axed about 1,000 positions, roughly 9% of its workforce at the time, citing labor costs that had grown faster than the business. That followed a 2023 reduction of about 500 employees, or around 4% of staff, as consumer spending cooled after the pandemic-fueled online shopping surge.
AI and the fight for relevance
While trimming headcount, eBay has been investing significantly in artificial intelligence. The company has rolled out AI tools internally and is weaving the technology into both buyer and seller experiences. It’s even partnered with OpenAI on its agentic web browser.
These investments come as eBay battles for attention not just against traditional rivals like Amazon and Walmart, but also against newer competitors like Temu, TikTok Shop, and Shein.
The company has been leaning hard into what it calls focus categories, such as collectibles, car parts, refurbished goods, and now fashion through Depop. Fourth-quarter results showed gross merchandise volume in these areas grew more than 16% compared to the previous year.
By thinning its ranks now, eBay appears to be bracing itself for a leaner, more tech-centric fight for the future of digital retail.
For more on how digital commerce giants are expanding their reach, read how PayPal is strengthening its retail footprint with its acquisition of Cymbio.
