eBay Announces Layoffs of 800 Employees Amid AI Integration Efforts

By Sam Stevenson Associate News Editor Share Newsweek is a Trust Project member eBay says it will cut about 800 jobs as the company reshapes its workforce to align with strategic priorities amid heavy investment in artificial intelligence. Newsweek contacted eBay via email outside of business hours for comment. Why It Matters The layoffs come as eBay pushes to streamline operations while spending more on new technology and acquisitions. It reflects a broader trend among tech companies cutting costs even as revenue and investment activity remain strong. ... What We Know eBay announced it is laying off roughly 800 employees, representing about 6 percent of its global workforce, according to the company. The job cuts are spread across the organization and are tied to what eBay described as a need to better align its operating model with future priorities. The online marketplace had about 12,300 employees worldwide as of December 31, 2025, based on its most recent annual filing. Company officials said decisions were made based on areas of duplication, operating needs and long‑term strategic alignment rather than performance alone, CNBC reports. The layoffs follow a period of increased investment for eBay, particularly in artificial intelligence. The company has rolled out AI tools internally and has been working to integrate the technology across its buyer and seller platforms. eBay has also partnered with OpenAI as part of those efforts. Just days before announcing the job cuts, eBay said it would acquire Depop, a secondhand clothing marketplace owned by Etsy, for about $1.2 billion in cash. The deal is aimed at expanding eBay’s reach among younger shoppers and strengthening its position in the fast‑growing resale market. The company has reduced its headcount multiple times in recent years as it competes with rivals such as Amazon, Walmart and newer online marketplaces, including Temu and Shein. eBay reported strong fourth‑quarter results last week, with gross merchandise volume from focus categories growing more than 16 percent year over year. What People Are Saying An eBay spokesperson said in a statement : “We are taking steps to reinvest across our business and align our structure with our strategic priorities, which will affect certain roles across our workforce. “We are grateful for the contributions of the employees impacted and are committed to supporting them with care and respect.” eBay said in its most recent company filing: "We engage with our people on an ongoing basis to support their physical, financial and mental well-being for them and their families through expanded wellness resources. "As part of these efforts, we have continued our focus on ensuring our employees and their families have access to high-quality care." What Happens Next Attention will likely turn to how the layoffs affect eBay’s ongoing AI rollout and its integration of Depop, particularly as competition intensifies across online retail. Investors will also be watching future earnings updates for signs that the restructuring delivers the growth eBay is targeting. In a polarized era, the center is dismissed as bland. At Newsweek , ours is different: The Courageous Center—it's not "both sides," it's sharp, challenging and alive with ideas. We follow facts, not factions. If that sounds like the kind of journalism you want to see thrive, we need you. When you become a Newsweek Member , you support a mission to keep the center strong and vibrant. Members enjoy: Ad-free browsing, exclusive content and editor conversations. Help keep the center courageous. Join today.