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eBay cuts 1,000 jobs in second round of layoffs this year

eBay cuts 1,000 jobs in second round of layoffs this year

Money Moves San Jose, CA local

eBay's second round of cuts this year comes as third-quarter revenue beats its own forecast, though growth is expected to slow in the fourth quarter

October 28th, 2026: eBay beats its own forecast with $3.21 billion quarter

Overview

Updated Oct 29

eBay filed a state layoff notice on Oct. 21 covering 229 workers at its San Jose headquarters, part of a company-wide cut of about 1,000 jobs, or 9% of its workforce. The notice listed the layoffs as effective that day.

The October cut is eBay's second round this year, after about 800 jobs in February, and brings its reductions since early 2023 to roughly 3,300. It will cost $130 million to $150 million before taxes, mostly in the fourth quarter. On Oct. 28, eBay reported third-quarter revenue of $3.21 billion, up 13% excluding currency swings and above the forecast it gave in August.

Why it matters

eBay has cut 3,300 jobs since 2023 while betting on AI — a test of whether a legacy marketplace can reinvent itself without hollowing out.

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Key Indicators

1,000
Jobs cut in October 2026 round
About 9% of eBay's workforce, the second round this year.
229
San Jose workers in WARN filing
Employees at eBay's 2025 Hamilton Ave. headquarters covered by the Oct. 21 notice, which listed the cuts as effective immediately.
3,300
Total jobs cut since Feb. 2023
Sum of eBay's disclosed rounds: 500 in 2023, 1,000 in 2024, 800 in February 2026 and 1,000 in October 2026.
12,300
Employees as of end of 2025
eBay's headcount before the 2026 layoff rounds.
$130M-$150M
Restructuring charges
Pretax cost of the October layoffs, mostly in the fourth quarter.
$3.21B
Third-quarter 2026 revenue
Up 13% excluding currency swings, above eBay's August forecast of $3.07 billion to $3.12 billion.

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People Involved

Jamie Iannone
Jamie Iannone
Chief Executive Officer, eBay
Leading eBay's restructuring after a quarter that beat the company's own forecast
TB
Tim Bajarin
Analyst, Creative Strategies
Commenting on eBay's layoffs
RW
Robert Chapman Wood
Professor of Strategic Management, San Jose State University
Commenting on AI's impact on Silicon Valley employment

Organizations Involved

eBay
eBay
Online marketplace
Cutting about 1,000 jobs, expecting $130 million to $150 million in restructuring charges and forecasting fourth-quarter revenue of $3.19 billion to $3.24 billion.

Online marketplace founded in 1995 that is shifting toward curated resale and cutting staff.
California Employment Development Department
California Employment Development Department
State agency
Publishes WARN Act notices

California agency that administers unemployment insurance and publishes WARN notices.

Timeline

February 2023 October 2026

8 events Latest: October 28th, 2026 · 2 weeks ago
Tap a bar to jump to that date

  1. eBay beats its own forecast with $3.21 billion quarter

    Latest Financial

    Third-quarter revenue rose 13% excluding currency swings, above the $3.07 billion to $3.12 billion eBay forecast in August. Gross merchandise volume was $23.2 billion and non-GAAP earnings were $1.51 a share.

  2. eBay details restructuring charge and forecast beat

    Financial

    eBay said the 1,000-job cut would produce $130 million to $150 million in pretax charges, mostly in the fourth quarter. It also said third-quarter results would beat its August forecast.

  3. eBay files WARN notice for 229 San Jose workers

    Layoffs

    eBay files WARN notice for 229 San Jose workers as part of 1,000-job cut.

  4. eBay to close San Francisco office, shifting 198 workers to San Jose

    Workplace

    Startup Fortune reported on Oct. 29 that eBay is shutting its office at 300 Mission St. and moving about 198 employees, mostly software engineers, researchers and finance staff, to its San Jose headquarters.

  5. eBay completes Depop acquisition

    Acquisition

    eBay completes $1.4 billion acquisition of Depop from Etsy.

  6. eBay lays off about 800 employees

    Layoffs

    eBay lays off about 800 employees, about 6% of workforce.

  7. eBay cuts about 1,000 jobs

    Layoffs

    eBay cuts about 1,000 jobs in second major round.

  8. eBay lays off about 500 employees

    Layoffs

    eBay lays off about 500 employees in first round of cuts.

Scenarios

1

eBay announces another round of layoffs in 2027

Possible Resolves by Q2 2027

Discussed by: Tech industry analysts tracking eBay's pattern of annual cuts

eBay has cut jobs every year since 2023. If the AI pivot doesn't deliver growth quickly, or if the economy softens, the company could announce another reduction in 2027. eBay said it will continue hiring in "priority areas," but the overall trend has been shrinking headcount.

2

eBay stabilizes headcount after restructuring

Possible Resolves by Q2 2027

Discussed by: Company leadership and financial analysts

eBay's leadership says the cuts align with "top strategic priorities" and that the company will hire in priority areas. If the restructuring works, headcount could stabilize or grow as eBay invests in AI and curated resale. The company's next earnings reports will show whether the cuts are the end of the reduction or a pause.

3

WARN Act lawsuit over zero-day notice

Unlikely Resolves by Q1 2027

Discussed by: Employment lawyers and labor advocates

eBay's WARN filings in 2026 gave 0 days advance notice, according to CaliforniaWarn's analysis — far less than the 60 days California law requires. The statute allows exceptions, but if workers or the state challenge the filings, eBay could face a class-action lawsuit. Such suits are common after large layoffs with short notice.

4

Layoff savings lift eBay's profit margin in 2027

Possible Resolves by End of 2027

Discussed by: eBay management and analysts tracking the restructuring

eBay says savings from the October cuts will go toward its strategic and operating initiatives. Its non-GAAP operating margin slipped to 26.3% in the third quarter from 27.0% a year earlier. If costs fall faster than revenue grows, the margin should recover next year; if not, the cuts bought growth rather than profit.

Historical Context

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

1993-1995

IBM's 1993 restructuring

Lou Gerstner took over IBM in 1993 and cut 35,000 jobs on top of earlier reductions, shrinking the company from about 400,000 employees in 1990 to roughly 220,000 by 1995. He pivoted IBM from hardware to software and services.

Then

IBM lost billions in the early 1990s but returned to profitability by 1994.

Now

The pivot made IBM a services and software leader and saved the company from collapse.

Why this matters now

Like eBay, IBM was a legacy tech company that cut deeply to fund a new strategic direction. The question is whether eBay's AI pivot will succeed like IBM's services pivot did.

July 2014

Microsoft's 2014 pivot

Satya Nadella became Microsoft CEO in February 2014 and cut 18,000 jobs, mostly from the Nokia phone business, as he pivoted the company toward cloud computing and AI.

Then

Microsoft's stock initially dipped but then rose steadily.

Now

The pivot drove Microsoft's market value from about $300 billion to over $3 trillion, making it one of the most valuable companies in the world.

Why this matters now

Microsoft shows how a tech giant can cut jobs to fund a new focus and emerge stronger. eBay is attempting a similar pivot, though on a smaller scale.

2012-2016

Yahoo's repeated layoffs (2012-2016)

Yahoo cut thousands of jobs under CEO Marissa Mayer as it struggled to find a strategic direction amid competition from Google and Facebook. The company cycled through multiple strategies without a clear winner.

Then

Yahoo's revenue stagnated and it continued to lose market share.

Now

Yahoo sold its core business to Verizon for $4.8 billion in 2017, ending its run as an independent company.

Why this matters now

Yahoo is the cautionary tale: repeated layoffs without a successful pivot can hollow out a company. eBay's challenge is to avoid that fate.

Sources

(10)
+4
California Employment Development Department NBC Bay Area CNBC ABC7 San Francisco CaliforniaWarn Reuters / U.S. News StockTitan U.S. Securities and Exchange Commission Startup Fortune KRON4