eBay Lays Off 800 Employees as Strategic Priorities Shift Amid AI Push

eBay has announced a fresh round of layoffs, impacting 800 employees — approximately 6 per cent of its global full-time workforce. The move is part of the company’s broader strategy to realign operations and focus on evolving business priorities.

According to the company, the restructuring aims to better position eBay for long-term growth and efficiency. In its official statement, eBay said it is taking steps to reinvest across the business while aligning its organisational structure with strategic objectives. The layoffs will affect roles across different teams and are not restricted to a single department.

As of December 31, 2025, eBay employed around 12,300 people worldwide. This marks the third major workforce reduction in recent years, reflecting ongoing efforts to streamline operations in a competitive e-commerce landscape.

Increased Focus on AI and Partnerships

The job cuts come as eBay continues to invest in artificial intelligence tools to improve buyer and seller experiences. The company has partnered with OpenAI to enhance features on its platform. These AI-driven initiatives are intended to boost efficiency, personalise user experiences, and strengthen competitiveness.

eBay faces intense competition from global giants such as Amazon and Walmart, along with fast-growing marketplaces including Etsy, TikTok Shop, Temu, and Shein.

Layoffs Follow $1.2 Billion Acquisition

The announcement comes shortly after eBay revealed plans to acquire Depop, a secondhand fashion marketplace, for approximately $1.2 billion in cash. The acquisition is aimed at expanding eBay’s appeal among Gen Z and millennial consumers, strengthening its position in the resale and fashion segments.

Despite the workforce reduction, eBay recently reported strong financial performance. In its fourth-quarter results, revenue increased 15 per cent year-over-year to $3 billion. Gross merchandise volume in key categories such as collectibles and refurbished goods grew by more than 16 per cent compared to the previous year.

Previous Workforce Reductions

This is not the first time eBay has downsized its workforce. In early 2024, the company cut around 1,000 roles, or 9 per cent of staff, citing rising labour costs. In 2023, it eliminated approximately 500 positions amid slowing consumer demand following the pandemic-driven e-commerce surge.

The latest layoffs signal a continued shift toward operational efficiency and technology-driven transformation. As the digital retail space evolves rapidly, eBay appears focused on adapting its workforce and investments to remain competitive in a crowded global marketplace.