Ebay Cuts 800 Jobs (6% Workforce) After $1.2B Depop Purchase
eBay is cutting 800 jobs, about 6% of its workforce, days after closing its $1.2 billion Depop acquisition and reporting Q4 revenue of nearly $3 billion. This is the third downsizing in three years as management reassigns resources to AI shopping tools that helped drive a 10% 2025 GMV increase to $21.2 billion.
1. Workforce Reduction Details
eBay has eliminated 800 roles, representing roughly 6% of its 12,300 employees, marking its third headcount reduction in three years. About one-third of the positions were in the Bay Area, including 243 layoffs at San Jose headquarters and 28 at the San Francisco office.
2. Acquisition Reinvestment Strategy
The layoffs follow the $1.2 billion acquisition of secondhand clothing app Depop, with management reallocating cost savings to strategic priorities. Leadership views the cuts as a means to streamline operations and fund growth initiatives across its marketplace.
3. AI Initiatives and Growth
eBay has rolled out multiple AI-driven features, such as an OpenAI shopping agent and automated listing tools, which supported a 10% rise in gross merchandise volume to $21.2 billion in 2025. Q4 revenue reached nearly $3 billion as these technologies enhanced buyer and seller experiences.