eBay plans to cut roughly 9% of its workforce, or about 1,000 positions, marking the company's second major round of layoffs in 2026 and arriving just as its stock has rallied to levels that are putting the South Bay giant back in Wall Street's good graces. CEO Jamie Iannone announced the cuts to employees in an internal memo, and an eBay spokesperson confirmed the layoffs on Wednesday, with affected employees to be notified in the coming days.
The job cuts come on top of roughly 800 positions, or 6% of the workforce, eliminated in an earlier February 2026 restructuring, according to the San Francisco Chronicle. Taken together, the two rounds bring eBay's total 2026 workforce reductions to approximately 15% of its year-end 2025 global headcount, which stood at 12,300 employees, as reported by The Next Web. The latest cuts are intended to simplify operations and reallocate resources toward the company's fastest-growing businesses, including authenticated luxury goods, collectibles and refurbished products.
The cuts aren't isolated to this round, either. eBay previously eliminated about 500 jobs in 2023 and roughly 1,000 positions in 2024, per the Chronicle's reporting, making 2026 the continuation of a multi-year trend of headcount reduction under Iannone, who became CEO in 2020.
A Stock Rally Complicates the Layoff Story
What makes this round notable is the backdrop: eBay's stock price has surged nearly 40% year-to-date in 2026, significantly outperforming the broader S&P 500's roughly 12% gain, according to Reuters copy published by Investing.com. Growth in categories like authenticated luxury and collectibles is part of the backdrop, even as the company sheds workers rather than adding them during a growth period.
Morgan Stanley named eBay its top internet stock pick in October, with analyst Nathan Feather estimating that interactive livestream selling via eBay Live accounts for roughly 40% of the company's 2026 gross merchandise volume growth, according to Barron's reporting referenced by Moomoo. Feather raised his price target on the stock to $132. The company has also been investing in artificial intelligence and other technology aimed at improving its marketplace for buyers and sellers.
San Francisco Office Closing as San Jose Absorbs Staff
Beyond the layoffs, eBay announced it would close its San Francisco office at 300 Mission St., with 198 employees moving to the company's San Jose headquarters, per the Chronicle. That consolidation follows eBay's earlier move to exit its former North First Street campus in San Jose, a decision tied to a $12 million lease termination fee the company paid in March. That former campus has since faced total foreclosure over $98.4 million in debt, as Hoodline previously reported, with the property's market value plummeting from $132.5 million in 2018 to $54.7 million this year.
eBay's physical footprint has also shrunk outside the Bay Area. The company downsized its Manhattan presence in June, relocating from 625 Avenue of the Americas to a smaller office in New York's Flatiron district, a move Hoodline covered as part of broader efforts to lower fixed facility costs while preserving regional presence.
Depop Deal and GameStop's Rejected Bid Loom Over Restructuring
eBay completed its acquisition of Depop, the secondhand fashion marketplace, in July 2026, expanding its reach among younger shoppers as part of its recommerce push. Depop will operate as a distinct brand while benefiting from eBay's resources, according to the company. Fashion United reported the all-cash deal totaled approximately $1.4 billion, including a $1.2 billion purchase price and $200 million in adjustments.
The restructuring also follows an unsolicited takeover drama earlier in the year. GameStop CEO Ryan Cohen launched a $56 billion cash-and-stock bid for eBay in May 2026, which eBay's board rejected as neither credible nor attractive, according to PYMNTS.com. In its pitch, GameStop had pointed to eBay's $2.4 billion in sales and marketing spending in fiscal 2025 against just one million net new active buyers, arguing as much as $1.2 billion could be cut from marketing alone, per MediaPost. Cohen later said GameStop was considering a partnership or joint venture but had made no final decision; he also said the company was continuing its acquisition pursuit.
Part of a Broader Bay Area Tech Pullback
eBay's cuts land amid a wider contraction across Silicon Valley. The Bay Area saw a net loss of 27,300 technology jobs in 2025.
California law requires employers to provide WARN notices for certain mass layoffs.
eBay is scheduled to report third-quarter financial results on October 28, a date that will give investors and laid-off workers alike a clearer picture of how the company's restructuring is translating into performance. For now, the company is pressing ahead with its pivot toward livestream selling, authenticated goods and younger shoppers drawn in through Depop, even as it trims the workforce that built its original marketplace.
