eBay to cut 1,000 jobs in workforce reduction

San Jose-based online marketplace eBay announced plans to cut roughly 1,000 jobs, amounting to 9% of its total workforce, as the company restructures its operations. CEO Jamie Iannone detailed the workforce reduction in an internal memo, which was later confirmed by an eBay spokesperson on Wednesday.

The affected employees will receive official notifications in the coming days. The company has not yet specified which precise locations or departments will bear the brunt of the cuts.

Shifting Market Strategy and Prioritizing Luxury Goods

The workforce reduction follows a steady narrowing of eBay’s corporate focus under Iannone, who became CEO in 2020. Rather than competing purely on broad merchandise volume, the online marketplace has redirected resources toward authenticated luxury goods, collectibles, and refurbished items to court younger shoppers.

This strategic realignment also includes the acquisition of second-hand fashion platform Depop. According to company statements, Depop operates as a distinct brand while drawing on eBay’s broader corporate resources.

Despite reporting healthy financial figures—including quarterly revenues exceeding $3 billion and a $552 million profit—the online auction pioneer has carried out multiple rounds of structural downsizing. The company previously eliminated about 500 jobs in 2023, about 1,000 positions in 2024, and another 800 roles in February 2025.

Artificial Intelligence Pressure Across Silicon Valley

Industry analysts point to broader technological shifts as a driving force behind the ongoing contractions. Creative Strategies analyst Tim Bajarin stated that automation is increasingly capable of managing administrative functions previously handled by human workers.

AI could do so many of the jobs, especially administration jobs. While this is not good news for those who’ve lost their jobs, I’m afraid that this is a part of ongoing strategies with a lot of companies.

Tim Bajarin

San Jose State University Strategic Management Professor Robert Chapman Wood noted that these corporate moves highlight an ongoing regional dilemma regarding the utility of emerging technologies.

The thing that is part of a larger issue is what are we doing with this wild new technology? It hasn’t yet produced the kind of jobs boom that earlier technologies have produced, and it hasn’t produced the value for the customer that earlier technologies have produced.

Robert Chapman Wood

Upcoming Financial Disclosure and Answers

Further clarity regarding which divisions face restructuring may emerge when the company releases its third-quarter financial report. That corporate disclosure is scheduled to take place in a week.