eBay to cut 9% of workforce despite improved outlook

eBay said in an Oct. 22 regulatory filing it plans to eliminate about 9% of its global workforce and record $130 million to $150 million in charges.

The cuts come as eBay told investors in the same filing that results for the quarter ended Sept. 30 should exceed August guidance for $3.07 billion to $3.12 billion in revenue.

A company spokesperson confirmed to Reuters that the plan would affect about 1,000 employees, according to TheStreet. eBay said most charges will be recorded in the fourth quarter of 2026 and will largely reflect severance and employee benefits.

The company said savings from the restructuring will support future strategic and operating initiatives. It did not identify which divisions or projects would receive the redirected spending.

eBay said the workforce action is meant to align resources with strategic priorities and long-term growth. The reduction is expected to be mostly finished by the end of the first quarter of 2027, subject to local requirements.

The announcement marks eBay’s second large workforce reduction in 2026. The company announced 800 job cuts in February, according to TheStreet.

The latest plan follows other changes to eBay’s California footprint. TheStreet reported that the company prepared to close its San Francisco office at 300 Mission Street, with operations scheduled to wind down by Sept. 30; California WARN notices listed 243 layoffs in San Jose and 28 in San Francisco, plus the relocation of 198 San Francisco employees to San Jose.

The business backdrop is stronger than the staffing action alone suggests. eBay reported second-quarter revenue of $3.1 billion, up 15% from a year earlier, while gross merchandise volume, the value of goods sold through its marketplace, rose 15% to $22.4 billion.

In August, eBay projected third-quarter gross merchandise volume of $22 billion to $22.4 billion. The Oct. 22 filing said September-quarter financial results should come in above earlier guidance, without giving updated figures.

The company has been investing in categories including secondhand fashion, collectibles and refurbished goods. TheStreet reported that eBay completed its acquisition of Depop on July 30 for about $1.4 billion, including preliminary purchase-price adjustments.

eBay’s 2026 Recommerce Report, released Oct. 7, said 70% of surveyed consumers globally viewed secondhand shopping as a way to manage household budgets, while 84% ranked saving money among their top three reasons for buying secondhand goods.

The company acknowledged risks from the restructuring, including possible operational disruption and effects on its ability to serve buyers and sellers. eBay has not announced related changes to selling fees, buyer protections or other marketplace policies.

Upcoming eBay milestones

In the fourth quarter of 2026, investors can check whether eBay records most of the $130 million to $150 million in expected restructuring charges, as the company said in the filing.

By the end of the first quarter of 2027, the company expects the workforce reduction to be mostly complete, subject to local requirements.

Source: regulatory filing, eBay, Oct. 22; news article, TheStreet, Oct. 22.