eBay cutting 800 jobs amid strategic realignment

February 27, 2026 eBay is cutting roughly 800 jobs or about six per cent of its workforce, as the company continues to reshape operations while investing in artificial intelligence and category expansion. The reductions come as the e-commerce firm balances cost controls with competitive pressure from larger and faster-growing rivals.

“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,” an eBay spokesperson said in a statement. 

The cuts are spread across the company and were based on operating model needs, duplication and alignment with future priorities, according to the spokesperson. eBay reported 12,300 employees worldwide as of Dec. 31, 2025, in its latest annual filing.

The workforce reduction follows a week of notable developments. eBay reached a settlement with a Massachusetts couple who sued the company after being targeted in a harassment campaign carried out by several former employees. Two former executives received prison sentences in 2022 in connection with the scheme. Terms of the settlement were not disclosed.

At the same time, eBay has continued to increase spending on artificial intelligence. The company has implemented AI tools internally and integrated the technology into buyer and seller experiences. It has also partnered with OpenAI on an agentic web browser.

Strategically, eBay is leaning into selected “focus categories,” including collectibles, car parts and accessories, refurbished goods and fashion. In its fourth-quarter earnings report last week, the company said gross merchandise volume from those focus categories rose more than 16 per cent year over year.

The company also announced plans to acquire Depop, Etsy’s secondhand clothing marketplace, for about $1.2 billion in cash. CEO Jamie Iannone said the deal would strengthen eBay’s position in fashion, one of its fastest-growing categories, and expand reach among younger consumers. Roughly 90 per cent of Depop’s user base is under 34.

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Jim Love

Jim is an author and podcast host with over 40 years in technology.

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