Observed Signal · Feb 26, 2026 · Hiring · Source: techcrunch · Impact: 2/5 · Sentiment: Negative
eBay Cuts 800 Jobs Amid Strategic Restructuring
eBay announced plans to cut roughly 800 full-time positions—about 6% of its workforce—citing a need to realign its structure and reinvest across the business. The move follows eBay’s recent agreement to acquire secondhand clothing app Depop from Etsy for $1.2 billion in cash and comes after the company posted stronger-than-expected fourth-quarter results, with revenue up 15% to $3 billion. TechCrunch notes this is eBay’s third round of layoffs in three years (about 1,000 jobs in early 2024 and ~500 in early 2023). Bloomberg initially reported the cuts. eBay said it will support impacted employees and described the changes as aligning roles with strategic priorities.
eBay is a major online marketplace; workforce reductions and recent Depop acquisition are company-level changes that may modestly affect marketplace operations and retail commerce dynamics but do not appear industry-shifting.
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Key Takeaways & Evidence Grounding
- eBay is cutting around 800 jobs, approximately 6% of its full-time employees.
- The layoffs come a week after eBay announced it would acquire Depop from Etsy for $1.2 billion in cash.
- eBay reported fourth-quarter revenue rose 15% to $3 billion, above analysts' expectations.
- This is eBay’s third round of layoffs in three years: ~1,000 jobs cut in early 2024 (~9%) and ~500 in early 2023 (~4%).
- Bloomberg was the first outlet to report the layoffs.
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eBay Cuts 800 Jobs Amid Strategic Restructuring Efforts
eBay said it will eliminate roughly 800 roles, about 6% of its global workforce, as part of a reorganization to realign resources and reinvest across the business. The company had 12,300 employees as of Dec. 31, 2025. The announcement follows a recently disclosed settlement with a Massachusetts couple who sued eBay over a 2019–2021 harassment campaign by former employees; terms were not disclosed. eBay has been trimming headcount while increasing investment in artificial intelligence, implementing internal AI tools and partnering with OpenAI on an "agentic web browser." The company is also pursuing growth via acquisitions, announcing plans to buy Depop for about $1.2 billion in cash and reporting that gross merchandise volume from its focus categories grew more than 16% year over year in the fourth quarter.
Etsy to Cut 12% of Workforce After Q2 Results
Etsy announced a reorganization cutting about 220 roles (≈12% of staff) to simplify structure, flatten teams, speed decision‑making and position the company for growth rather than as a pure cost‑cutting exercise. Management said it will continue investing in AI/ML for recommendations, search and digital assistants; CEO Kruti Patel Goyal noted the reductions were not driven by AI even as AI changes how work is done. The cuts—mainly in product and engineering—leave roughly 1,600 employees and carry about $35 million of restructuring costs, mostly severance and benefits. The move accompanied Q2 results: revenue of $668.3 million (up just over 6% excluding Depop), marketplace sales growth ~9.3%, and a net loss of about $46.7 million. Etsy has sold Depop to eBay and is refocusing on its core marketplace, including a beta app in ChatGPT.
Etsy Soars 17% After $1.2B Depop Sale to eBay
Etsy announced it will sell secondhand clothing marketplace Depop to eBay for about $1.2 billion in cash, prompting Etsy shares to jump more than 14% in extended trading. Etsy purchased Depop roughly five years ago for about $1.62 billion and said the sale lets it refocus on growing the core Etsy marketplace. eBay said the acquisition expands its presence in fashion and helps reach younger recommerce shoppers; roughly 90% of Depop users are under 34. The transaction is expected to close in the second quarter of 2026. The announcement coincided with eBay’s strong fourth-quarter results: adjusted EPS of $1.41 on $2.97 billion revenue, GMV growth to $21.2 billion, and upbeat Q1 guidance.
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