eBay is preparing another workforce reduction after returning approximately $1.1 billion to shareholders during the first half of 2026, placing fresh layoffs alongside rising profits and continued spending on share repurchases.
The online marketplace plans to eliminate approximately 9% of its workforce, according to an internal memo from CEO Jamie Iannone reviewed by Reuters. An eBay spokesperson confirmed the cuts to the news agency.
The planned reduction follows February’s elimination of approximately 800 positions, representing 6% of eBay’s workforce.
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Reuters estimated that the latest 9% reduction could affect approximately 1,100 employees based on the company’s year-end 2025 headcount of 12,300. The latest announcement marks eBay’s fourth major workforce reduction since 2023, following approximately 500 cuts that year and another 1,000 in 2024.
According to Reuters, Iannone told employees the latest changes would simplify operations and redirect resources toward the company’s fastest-growing businesses. Affected employees are expected to receive notifications in the coming days.
Those priorities include authenticated luxury goods, collectibles, and refurbished products. eBay also completed its $1.4 billion acquisition of fashion resale marketplace Depop in July, expanding its exposure to younger consumers.
The announcement follows a period of improving financial performance. Second-quarter revenue increased 15% year-over-year to $3.13 billion, while net income from continuing operations jumped 51% to $552 million.
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The company also generated $326 million in free cash flow from continuing operations during the quarter.
According to eBay’s second-quarter SEC filing, the company repurchased $810 million of its shares and distributed $277 million in cash dividends during the six months ended June 30. That brought shareholder returns to $1.087 billion before the latest restructuring announcement.
In February, eBay authorized an additional $2 billion in share repurchases, bringing its remaining authorization to approximately $2 billion as of June 30.
However, the pace of repurchases has slowed. The company spent approximately $1.3 billion buying back shares during the comparable period in 2025.
The restructuring comes as eBay shares have gained nearly 40% this year, substantially outperforming the S&P 500, according to Reuters.
The company entered the current quarter forecasting third-quarter revenue of $3.07 billion to $3.12 billion.
