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eBay cuts 1,000 jobs in second round of layoffs this year

eBay cuts 1,000 jobs in second round of layoffs this year

Money Moves San Jose, CA local

eBay's latest cut follows 800 layoffs in February and a $1.4 billion bet on the resale platform Depop

2 days ago: eBay files WARN notice for 229 San Jose workers

Overview

Updated 47 minutes ago

eBay filed a WARN notice with California on Oct. 21 covering 229 workers at its San Jose headquarters, with the layoff effective that day. The filing is part of a company-wide cut of about 1,000 jobs — 9% of its workforce — and the second round of layoffs this year.

The cuts are the latest in a pattern: eBay has shed roughly 3,300 jobs since early 2023 while investing in AI and buying the resale platform Depop for $1.4 billion. CEO Jamie Iannone says the strategy is working, but the company's headcount keeps shrinking.

Why it matters

eBay has cut 3,300 jobs since 2023 while betting on AI — a test of whether a legacy marketplace can reinvent itself without hollowing out.

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Key Indicators

1,000
Jobs cut in October 2026 round
About 9% of eBay's workforce, the second round this year.
229
San Jose workers in WARN filing
Employees at eBay's 2025 Hamilton Ave headquarters covered by the Oct. 21 notice.
3,300
Total jobs cut since Feb 2023
Sum of eBay's layoff rounds: 500 in 2023, 1,000 in 2024, 800 in Feb 2026, 1,000 in Oct 2026.
12,300
Employees as of end of 2025
eBay's headcount before the 2026 layoff rounds.

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People Involved

Organizations Involved

Timeline

February 2023 October 2026

5 events Latest: 2 days ago
Tap a bar to jump to that date
  1. eBay files WARN notice for 229 San Jose workers

    Latest Layoffs

    eBay files WARN notice for 229 San Jose workers as part of 1,000-job cut.

  2. eBay completes Depop acquisition

    Acquisition

    eBay completes $1.4 billion acquisition of Depop from Etsy.

  3. eBay lays off about 800 employees

    Layoffs

    eBay lays off about 800 employees, about 6% of workforce.

  4. eBay cuts about 1,000 jobs

    Layoffs

    eBay cuts about 1,000 jobs in second major round.

  5. eBay lays off about 500 employees

    Layoffs

    eBay lays off about 500 employees in first round of cuts.

Scenarios

1

eBay announces another round of layoffs in 2027

Possible Resolves by Q2 2027

Discussed by: Tech industry analysts tracking eBay's pattern of annual cuts

eBay has cut jobs every year since 2023. If the AI pivot doesn't deliver growth quickly, or if the economy softens, the company could announce another reduction in 2027. eBay said it will continue hiring in "priority areas," but the overall trend has been shrinking headcount.

2

eBay stabilizes headcount after restructuring

Possible Resolves by Q2 2027

Discussed by: Company leadership and financial analysts

eBay's leadership says the cuts align with "top strategic priorities" and that the company will hire in priority areas. If the restructuring works, headcount could stabilize or grow as eBay invests in AI and curated resale. The company's next earnings reports will show whether the cuts are the end of the reduction or a pause.

3

WARN Act lawsuit over zero-day notice

Unlikely Resolves by Q1 2027

Discussed by: Employment lawyers and labor advocates

eBay's WARN filings in 2026 gave 0 days advance notice, according to CaliforniaWarn's analysis — far less than the 60 days California law requires. The statute allows exceptions, but if workers or the state challenge the filings, eBay could face a class-action lawsuit. Such suits are common after large layoffs with short notice.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

1993-1995

IBM's 1993 restructuring

Lou Gerstner took over IBM in 1993 and cut 35,000 jobs on top of earlier reductions, shrinking the company from about 400,000 employees in 1990 to roughly 220,000 by 1995. He pivoted IBM from hardware to software and services.

Then

IBM lost billions in the early 1990s but returned to profitability by 1994.

Now

The pivot made IBM a services and software leader and saved the company from collapse.

Why this matters now

Like eBay, IBM was a legacy tech company that cut deeply to fund a new strategic direction. The question is whether eBay's AI pivot will succeed like IBM's services pivot did.

July 2014

Microsoft's 2014 pivot

Satya Nadella became Microsoft CEO in February 2014 and cut 18,000 jobs, mostly from the Nokia phone business, as he pivoted the company toward cloud computing and AI.

Then

Microsoft's stock initially dipped but then rose steadily.

Now

The pivot drove Microsoft's market value from about $300 billion to over $3 trillion, making it one of the most valuable companies in the world.

Why this matters now

Microsoft shows how a tech giant can cut jobs to fund a new focus and emerge stronger. eBay is attempting a similar pivot, though on a smaller scale.

2012-2016

Yahoo's repeated layoffs (2012-2016)

Yahoo cut thousands of jobs under CEO Marissa Mayer as it struggled to find a strategic direction amid competition from Google and Facebook. The company cycled through multiple strategies without a clear winner.

Then

Yahoo's revenue stagnated and it continued to lose market share.

Now

Yahoo sold its core business to Verizon for $4.8 billion in 2017, ending its run as an independent company.

Why this matters now

Yahoo is the cautionary tale: repeated layoffs without a successful pivot can hollow out a company. eBay's challenge is to avoid that fate.

Sources

(5)