eBay Cuts 1,100 Jobs in Latest Layoff Round
Translated & summarized from Bizportal by baba
E-commerce company eBay is laying off approximately 1,100 employees, or 9% of its workforce, as part of a plan to streamline operations and focus on growth areas. This brings the total job cuts this year to about 1,900, following 800 layoffs in February. The company's business results have been improving, with revenue up 15% in the second quarter. The layoffs also coincide with eBay's expansion in the secondhand market and the closure of its development center in Netanya, Israel.
The story in 6 lines · by baba
- eBay is cutting approximately 1,100 jobs, representing 9% of its global workforce.
- This latest round of layoffs brings the total job reductions at eBay this year to about 1,900.
- The company's business performance has shown improvement, with a 15% revenue increase in the second quarter.
- eBay is expanding its focus on the secondhand market, including the acquisition of Depop.
- The company plans to close its development center in Netanya, Israel, by early 2026.
- CEO Jamie Iannone stated the layoffs are intended to simplify the organizational structure.
E-commerce giant eBay Inc. is implementing another round of layoffs, affecting approximately 1,100 employees, which represents about 9% of its workforce. According to an internal memo from CEO Jamie Iannone, obtained by Reuters, the move aims to simplify the company's organizational structure and reallocate resources to growing business areas. An eBay spokesperson confirmed the layoffs, with affected employees expected to be notified soon. This marks eBay's second major layoff in less than a year, following the dismissal of about 800 employees in February. Combined, these recent cuts bring the total job reductions this year to around 1,900 positions. The company also underwent significant downsizing in previous years, including about 1,000 job cuts in early 2024 and 500 in 2023.
These layoffs occur despite improving business results for eBay. In the second quarter, the company reported revenues of approximately $3.13 billion, a 15% increase year-over-year. Gross merchandise volume on the platform reached about $22.4 billion, also up 15%. eBay's stock has risen nearly 40% year-to-date, outperforming the S&P 500 index. Concurrently, eBay is expanding its presence in the secondhand market, focusing on fashion, luxury goods, collectibles, and refurbished items. In July, eBay finalized its acquisition of Depop from Etsy for approximately $1.4 billion, a platform specializing in secondhand fashion that helps eBay reach a younger consumer base.
The timing of the layoffs raises questions about efficiency gains from the acquisition and the potential impact of artificial intelligence on staffing needs. While eBay is integrating AI tools to assist sellers, the company has not cited AI or Depop redundancies as direct reasons for the current layoffs. The company's decision to close its development center in Netanya, Israel, which employed over 200 people, by the first quarter of 2026 is also part of its global restructuring. This center, established after the 2005 acquisition of Shopping.com, had operated in Israel for two decades. The closure decision preceded the current layoff announcement.
eBay is scheduled to release its third-quarter results in about a week. The company has forecast revenues between $3.07 billion and $3.12 billion, and the upcoming report will indicate whether business growth continues alongside the ongoing reduction in expenses and workforce.
