eBay cuts 9% of workforce in second layoff round of 2026

Overview

Updated Nov 1

eBay confirmed in a securities filing on October 22 that it will cut about 9% of its workforce, roughly 1,000 jobs. The company expects $130 million to $150 million in severance and related charges, mostly booked in the fourth quarter, with the cuts largely finished by the end of March 2027.

On October 28, eBay reported third-quarter revenue of $3.2 billion, up 14% from a year earlier, and gross merchandise volume of $23.2 billion, up 15%. Both beat Wall Street estimates, and the company returned $827 million to shareholders in the quarter. The cuts are eBay's second round of 2026 and its fourth since 2023, as CEO Jamie Iannone pushes authenticated luxury, collectibles and refurbished goods.

Why it matters

eBay is cutting staff to fund a bet on authenticated luxury and collectibles. October 28 earnings show whether the bet pays.

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Key Indicators

1,000

Jobs cut in October 2026 round

Second round of layoffs this year, affecting about 9% of staff.

Share of workforce eliminated

Announced October 21, 2026, in a memo to employees, then confirmed in an October 22 filing.

12,300

Employees at end of 2025

Baseline headcount before the two 2026 layoff rounds.

$130M–$150M

Restructuring charge

Pre-tax severance and benefit costs disclosed in the October 22 filing, mostly booked in the fourth quarter of 2026.

40%

Share gain in 2026

Outperforming the S&P 500's roughly 12% gain, per Reuters.

$1.4B

Depop acquisition price

Fashion resale platform purchase, later disclosed to cost $200 million more.

$56B

Rejected GameStop takeover bid

Ryan Cohen's unsolicited May 2026 offer, rejected as not credible.

Voices

Curated perspectives — historical figures and your fellow readers.

People Involved

Jamie Iannone

Chief executive officer, eBay

Announced the second round of 2026 layoffs on October 21; the company confirmed it in a filing the next day

Ryan Cohen

Chief executive officer, GameStop

Made unsolicited $56 billion bid for eBay in May 2026; rejected

Organizations Involved

eBay

Online marketplace

Cut about 9% of its workforce and told regulators on October 22 the move will cost $130 million to $150 million

Founded in 1995 as an auction site, now reshaping into a marketplace for authenticated luxury, collectibles, and refurbished goods.

Timeline

February 2023 October 2026

10 events Latest: October 28th, 2026 · 2 weeks ago

Tap a bar to jump to that date

October 2026
Q3 earnings due
Latest Finance

eBay is scheduled to report third-quarter results, the first test since the layoffs.
October 28th, 2026
Q3 results beat estimates
Finance

eBay reported third-quarter revenue of $3.2 billion, up 14%, and gross merchandise volume of $23.2 billion, up 15%, both above Wall Street estimates. The company returned $827 million to shareholders, including $689 million in buybacks.
October 28th, 2026
eBay confirms cuts in securities filing
Restructuring

A regulatory filing confirms the 9% workforce reduction and puts pre-tax charges at $130 million to $150 million, mostly in the fourth quarter, with the plan largely complete by the end of the first quarter of 2027. The filing also says third-quarter results will beat August guidance.
October 22nd, 2026
229 San Jose jobs cut
Restructuring

The Silicon Valley Business Journal reports 229 positions eliminated in San Jose, eBay's headquarters city, in the second round of 2026 layoffs.
October 22nd, 2026
eBay announces 9% workforce cut
Restructuring

eBay says it will cut about 1,000 jobs, or 9% of staff, its second round of layoffs in 2026.
October 21st, 2026
August 2026
Revenue guidance and Depop overrun
Finance

eBay forecasts Q3 revenue above estimates; discloses $200 million extra cost on Depop deal.
August 2026
May 2026
GameStop bid rejected
Finance

Ryan Cohen makes unsolicited $56 billion offer; eBay calls it neither credible nor attractive.
May 2026
February 2026
February layoffs
Restructuring

eBay eliminates about 800 jobs, or 6% of staff, citing operations streamlining.
February 2026
January 2024
Second round of cuts
Restructuring

eBay cuts roughly 1,000 jobs in another restructuring round.
January 2024
February 2023
First round of cuts
Restructuring

eBay lays off about 500 employees, citing streamlining.
February 2023

Scenarios

eBay beats Q3 forecasts as restructuring pays off

Deadline passed (Oct 30, 2026)

Discussed by: Wall Street analyst consensus, TipRanks

eBay reported October 28 that third-quarter revenue rose 14% to $3.2 billion and gross merchandise volume rose 15% to $23.2 billion, both above Wall Street estimates. If the margin gains hold, investors will read the layoffs as cost discipline. The stock extends its strong 2026 run, and the authentication strategy looks validated.

Depop overrun and restructuring charges weigh on Q3 profit

Deadline passed (Oct 30, 2026)

Discussed by: Bloomberg, TipRanks

The $200 million extra Depop cost lands in the quarter. If operating income misses and the company signals more charges ahead, investors may read the repeated layoffs as managing decline rather than funding growth. The 40% gain gives the stock room to give some back.

GameStop's Ryan Cohen returns with a new bid or stake

Unlikely Resolves by End of 2026

Discussed by: Reuters

Cohen's May offer was rejected as not credible. If the stock dips after earnings, he could rebuild a position or revise his bid, especially if cost cuts make the math more attractive. His record of buying into retailers he sees as undervalued keeps this live.

Restructuring charges run past the $130 million–$150 million estimate

Possible Resolves by Apr 30, 2027

Discussed by: eBay's own filing caution about unanticipated events during execution

eBay told regulators the charges could go higher than its estimate if execution slips. If later filings show a bigger bill, or the plan drags past March 2027, the savings meant to fund the luxury and collectibles push arrive later than promised.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

September 2014 - July 2015

PayPal spinoff (2014-2015)

Activist investor Carl Icahn pressured eBay to separate its payments arm PayPal, which then processed a large share of global e-commerce transactions. eBay's board resisted, then capitulated, spinning PayPal off in July 2015 after a fight that included a proxy battle and public letters.

Then

PayPal shares jumped at listing and the spinoff unlocked billions in shareholder value.

Now

eBay was left a smaller, slower-growing marketplace. The split became a template for activist-driven breakups.

Why this matters now

Shows eBay's pattern of responding to shareholder and market pressure with large structural changes — the same pressure channeling today's layoffs.

July 2012 - 2016

Yahoo's reinvention era (2012-2016)

Marissa Mayer took over Yahoo and cut costs with repeated layoffs while trying to pivot the company to mobile and content. Headcount fell by thousands even as she spent heavily on acquisitions like Tumblr. The pivot never solved Yahoo's core identity problem.

Then

Yahoo's stock rose early in Mayer's tenure on hopes of a turnaround that never materialized.

Now

Verizon bought Yahoo's internet business in 2017 for a fraction of its former value.

Why this matters now

eBay is running the same playbook — funding a strategic bet with headcount cuts. The cuts compound the problem if the growth bet doesn't land.

February 2023 - February 2026

eBay's earlier layoff rounds (2023-2026)

eBay cut roughly 500 jobs in February 2023, about 1,000 in January 2024, and 800 in February 2026, each time citing streamlining toward strategic priorities. The cuts came as the company shifted focus from general auctions to authenticated luxury, collectibles, and refurbished goods.

Then

Each round trimmed costs without derailing the stock, which gained steadily through 2026.

Now

The pattern shows a company permanently shrinking its workforce even as it claims the strategy is working.

Why this matters now

October 2026 is the fourth round in under four years, not an isolated event — it marks a structural shift in how eBay operates.