Key Takeaways
- eBay is eliminating approximately 800 positions, accounting for roughly 6% of its total workforce
- The workforce reduction affects multiple departments and is part of a strategic reorganization
- eBay has finalized a deal to purchase Depop from Etsy for approximately $1.2 billion
- Fourth-quarter revenue jumped 15% to $2.97 billion, surpassing Wall Street projections
- First-quarter revenue guidance ranges from $3 billion to $3.05 billion
The e-commerce platform eBay revealed Thursday that it plans to eliminate roughly 800 positions, which accounts for approximately 6% of its 12,300-person global workforce.
Company leadership positioned the workforce reduction as a component of a comprehensive initiative to “reinvest across the business” and ensure operational alignment with strategic objectives.
eBay has not disclosed a specific schedule for implementing the layoffs, nor has it indicated whether restructuring expenses will be recorded.
The job eliminations are distributed throughout various departments, with decisions driven by operational model requirements, redundant functions, and strategic alignment considerations.
Approximately 60% of eBay’s employee base operates from United States locations, based on the company’s latest Securities and Exchange Commission documentation.
The workforce announcement follows closely behind eBay’s confirmation of its acquisition of Depop — the pre-owned fashion marketplace currently owned by Etsy — in a transaction valued at roughly $1.2 billion in cash.
Chief Executive Officer Jamie Iannone indicated that bringing Depop into the fold would strengthen eBay’s position in fashion, a category experiencing rapid growth. Depop’s demographic profile shows that approximately 90% of users are younger than 34 years old.
Financial Results Overview
eBay delivered fourth-quarter revenue totaling $2.97 billion, representing a 15% year-over-year increase and exceeding analyst projections.
Gross merchandise volume increased 10% to reach $21.2 billion. Transaction volume within focus categories — encompassing collectibles, automotive parts, and refurbished merchandise — expanded more than 16% compared to the prior year period.
Adjusted earnings reached $1.41 per share, exceeding the analyst consensus estimate of $1.35. However, net profit declined to $528 million from $679 million recorded in the corresponding quarter of the previous year.
Artificial Intelligence Initiatives and Market Competition
eBay has been accelerating its artificial intelligence investments while simultaneously implementing cost reduction measures. The platform has integrated AI capabilities into internal operations and customer-facing features for both buyers and sellers, and has established a collaboration with OpenAI focused on an agentic web browser.
This represents another chapter in ongoing workforce adjustments. eBay has been systematically reducing headcount over multiple years as it attempts to remain competitive with larger marketplace operators like Amazon and Walmart, along with emerging competitors including TikTok Shop, Temu, and Shein.
Earlier this week, eBay finalized a settlement agreement with a Massachusetts couple who experienced stalking and harassment perpetrated by former company employees who were upset about their e-commerce blog. Settlement terms remain confidential.
For the first quarter of 2026, eBay projects adjusted earnings between $1.53 and $1.59 per share on revenue ranging from $3 billion to $3.05 billion. Wall Street analysts had anticipated $1.57 per share on $2.99 billion in revenue.
