EBay plans to cut about 1000 jobs in second round despite revenue growth
Key Facts
EBay plans to cut about 1000 jobs, representing nearly 9% of its workforce, in a new round of reductions confirmed by a company spokesperson to Reuters on October 21, 2026. Chief Executive Jamie Iannone said in a memo to employees that the reorganization aims to streamline operations and shift resources toward faster-growing areas of the business. "Our strategy is working," he added in the memo cited by Reuters, linking the job cuts to a reallocation of resources to support the strategy's execution. The move follows an earlier round of layoffs by eBay in February of the same year that affected about 800 employees, according to the news agency. The February cuts represented about 6% of staff at the time, meaning the new round targets more jobs and a larger share of the workforce than the previous round.
The reorganization coincides with growth in eBay's business, with revenue reaching about $3.1 billion in the second quarter of 2026, according to the company's earnings statement filed with the U.S. Securities and Exchange Commission. Revenue rose 15% from the same period a year earlier, according to the statement, as the company proceeds with workforce reductions and redirects its resources. EBay reported net income from continuing operations of $552 million for the same quarter. The company's advertising offerings generated total revenue of $596 million during the period, as part of the business activity detailed in the quarterly earnings statement. The new round of layoffs thus follows a quarter that combined year-on-year revenue growth with a profit from continuing operations, while Iannone's explanation to employees focuses on streamlining operations and directing resources.
EBay's expansion also included the acquisition of Depop from Etsy, in a deal with cash consideration paid at closing of about $1.4 billion, according to the seller's statement on the completion of the sale. Etsy said that consideration includes a base purchase price of $1.2 billion. An additional $200 million represents net purchase price adjustments and interest, according to the breakdown in the closing statement. The cash amount announced at closing is therefore split between the base acquisition price and amounts related to adjustments and interest. EBay had included Depop's expected impact in its third-quarter revenue outlook, making the acquisition part of the published business forecasts before the announcement of the new round of job cuts.
In the stock market, eBay shares had risen nearly 40% since the start of the year through Reuters' coverage of the layoff announcement on October 21, according to the news agency. Reuters compared that performance with gains of nearly 12% for the S&P 500 over the same period. The stock thus outperformed the benchmark index for the year to date, alongside the quarterly revenue growth reported by the company. The latest restructuring comes in a year that has combined that share-price rise with two rounds of workforce reductions at eBay. On the implementation of the latest round, Iannone said in his memo that affected employees would be notified in the days following the announcement.
EBay is preparing to announce its latest financial results on October 28, the week after confirming the layoff plan. The company had forecast third-quarter revenue of between $3.07 billion and $3.12 billion, according to its second-quarter earnings statement filed with the U.S. Securities and Exchange Commission. Those estimates include Depop's expected impact on the company's revenue during the period, according to the same statement. The published forecast range provides a benchmark for comparing actual revenue when results are released, following the completion of the acquisition and the announcement of the operational reorganization. The next financial disclosure will follow confirmation of the job cuts, providing the next opportunity to assess growth in the business whose strategy Iannone told employees was working.