Image Credentials: Image Title: eBay to Slash 800 Jobs in Third Straight Year of Restructuring Source: (sora.openai) Date: Feb 2026. Attribution: This image was created using AI-generated imagery (sora.openai) and does not depict a real-world scene.
By Open Chronicle Staff with Agencies
Thursday, February 26, 2026
SAN JOSE, Calif. — E-commerce pioneer eBay announced Thursday that it will eliminate approximately 800 roles, representing roughly 6% of its global workforce. The move marks the third consecutive year of significant layoffs for the Silicon Valley mainstay as it struggles to balance aggressive new acquisitions with a shifting digital retail landscape.
In a memo to employees, the company framed the decision as a “strategic realignment” rather than a simple cost-cutting measure. “We are taking steps to reinvest across our business and align our structure with our strategic priorities,” an eBay spokesperson said in a statement.
The layoffs come just one week after eBay dominated headlines with a $1.2 billion cash deal to acquire Depop, a fashion marketplace popular with Gen Z and millennial shoppers. Analysts suggest that while eBay is trimming its legacy headcount, it is doubling down on “recommerce” and niche vertical markets like collectibles and secondhand luxury to compete with rising rivals like Vinted and Temu.
A Pattern of Pruning
This latest round of cuts follows a 1,000-person reduction (9% of staff) in early 2024 and a 500-person cut (4%) in 2023. While the company recently reported a robust 2025 revenue of $11.1 billion, an 8% year-over-year increase, executives noted that headcount and operating expenses have continued to outpace the company’s organic growth.
The restructuring is expected to hit departments with overlapping functions and those no longer aligned with eBay’s “high-priority growth bets.” There are also indications that the company is shifting some U.S.-based roles to lower-cost international hubs in India and Ireland.
The AI Factor
In addition to the Depop integration, eBay is aggressively pivoting toward artificial intelligence. The company has recently ramped up AI-powered solutions for customer service and seller marketing tools. Industry observers note that the tech sector’s 2026 “restructuring cycle” is heavily influenced by these automation gains, which allow platforms to maintain high Gross Merchandise Volume (GMV) with leaner teams.
For the impacted employees, the news was delivered via one-on-one Zoom meetings, with U.S. staff reportedly asked to work from home Thursday to provide “space and privacy” during the transition.
As of midday trading, eBay’s stock (EBAY) rose 3.4%, signaling investor approval of the company’s leaner operational stance despite the human cost of the transition.