eBay Cuts 9% Of Workforce In Second Major Round Of Layoffs This Year
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Update October 22, 2026
A WARN notice obtained by Value Added Resource confirms eBay is eliminating 229 positions at its San Jose, California headquarters as part of this round of layoffs.
The filing identifies cuts across software engineering, product management, design, data science and other corporate functions, including 26 director-level positions and another 48 with manager titles. The notice says the layoffs are expected to be permanent and provided a detailed list of affected job titles.
The San Jose reductions represent only a portion of eBay's announced 9% global workforce reduction, with the number of jobs affected at other locations still unclear.
eBay is cutting approximately 9% of its workforce in another major round of layoffs, just eight months after eliminating roughly 800 positions earlier this year.
CEO Jamie Iannone announced the latest cuts in an internal memo sent to employees Tuesday evening, October 20. A copy of the memo obtained by Reuters confirms the company is reducing headcount as part of an effort to simplify operations, sharpen priorities and redirect resources toward areas with greater growth potential.
"Our strategy is working and continuing to capture the significant opportunity ahead requires us to make thoughtful choices about where we focus and invest," Iannone told employees.
"As part of these changes, we have made the difficult decision to reduce our workforce by approximately 9%."
Affected employees will be notified in the coming days, according to the memo. The company has not yet disclosed the total number of positions being eliminated or which departments and locations will be most heavily impacted.
In a statement to Value Added Resource, an eBay spokesperson said the reductions are intended to ensure the company can "continue to operate from a position of strength by aligning our teams and resources with our top strategic priorities."
eBay did not provide additional details about the number of employees affected, which teams or locations are impacted, or whether any positions will be relocated or replaced.
In an October 22 SEC filing, eBay estimated the restructuring will result in $130 million to $150 million in pre-tax charges, substantially all related to severance and post-employment benefits. Most of those costs are expected to be recognized in the fourth quarter, with the workforce reductions substantially completed by the end of March 2027.
The company expects to reinvest savings from the restructuring into its strategic and operating initiatives but did not disclose how much it expects to save.
These latest cuts follow layoffs affecting approximately 800 employees in February, representing about 6% of eBay's workforce at the time. Those reductions included significant cuts to engineering, development, payments and finance positions at the company's California offices, with some employees reporting their jobs were being moved overseas.
Liz Morton
But these two rounds of layoffs don't necessarily translate to an equivalent net reduction in eBay's workforce. The company has continued hiring in some areas since February and added employees through its acquisition of Depop. eBay reported approximately 12,300 employees at the end of 2025, but has not disclosed its current headcount or how much hiring and acquisitions have offset this year's cuts.
The announcement follows strong second-quarter earnings, when eBay reported $22.4 billion in gross merchandise volume and $3.1 billion in revenue, both up 15% year over year. The company completed its approximately $1.4 billion cash acquisition of Depop in July.
eBay also disclosed in the October 22 filing that it expects third-quarter results to exceed its previously issued guidance, ahead of its scheduled earnings report on October 28.
Liz Morton
eBay's 2026 proxy statement showed CEO Jamie Iannone's total compensation increased approximately 40% to $28.46 million in 2025, or about 158 times the company's median employee compensation of $180,276.
Approximately $3 billion was returned to shareholders through dividends and stock buybacks in 2025, with another $2 billion in share repurchases planned for 2026, according to figures highlighted at eBay's annual shareholder meeting in June.
At the Goldman Sachs Communacopia + Technology Conference in September, Iannone and CFO Peggy Alford highlighted consumer-to-consumer selling, AI, eBay Live and Vehicles as key growth opportunities.
eBay also faces continued pressure from GameStop CEO Ryan Cohen, whose unsolicited $56 billion acquisition proposal in May called for cutting $2 billion in annual expenses, including significant reductions in sales and marketing, product development and administrative costs.
Cohen has been particularly critical of eBay's staffing levels, telling Flipwise founder Justin Glow in a May interview, "I think that a business like eBay can be run from my house. It does not require 11-and-a-half-thousand employees."
Liz Morton
eBay's board rejected the acquisition proposal, but GameStop has since increased its ownership stake to approximately 9.8%. eBay has not indicated whether Cohen's proposals played any role in the latest restructuring.
The company has previously shifted development work to India, opening a new hub in Bengaluru last year to replace its research and development operations in Israel, where more than 200 employees were affected by the closure.
Liz Morton
Screenshots obtained by Value Added Resource from eBay's employee-verified section of workplace platform Blind show anonymous posters raising concerns for months about positions being eliminated in the US while hiring expands in India.
More recent posts following the October layoff announcement suggest eBay's China Center of Excellence (CCOE) may also be facing significant cuts, amid broader concerns about work being transferred to India. Value Added Resource has not independently verified those claims, and eBay has not confirmed which locations or departments are affected by the latest reductions.
Employees posting anonymously on TheLayoff.com have also reported meetings with managers appearing on calendars for October 21 as the company begins notifying affected workers.
This is a developing story. Additional details will be added as they become available.
