eBay Announces Job Cuts Following Acquisition of Depop

eBay has revealed it will reduce its workforce by hundreds of positions, just days after investing $1.2 billion to acquire a popular Gen Z fashion app. This move comes as the company settles a federal stalking lawsuit involving former executives.

Reports suggest that eBay plans to eliminate around 800 jobs, which is about 6% of its total workforce. As of December 31, 2025, eBay had around 12,300 employees globally.

The company hasn’t provided an immediate response regarding these layoffs.

Company’s Realignment Strategy

“We are taking steps to reinvest across our business and align our structure with our strategic priorities,” eBay stated to Reuters. They indicated that various roles would be affected across the organization.

Interestingly, just hours before the announcement of the layoffs, eBay settled a civil case against David and Ina Steiner, who had previously accused former staff of sending threats and bizarre items like cockroaches and pig masks to silence them.

The former eBay executives involved in that case had been sentenced to prison in 2022, with the settlement details remaining undisclosed.

Acquisition of Depop

Earlier this month, eBay’s acquisition of Depop—a popular peer-to-peer fashion marketplace—also made headlines. Many Gen Z and Millennial users favor selling secondhand clothing and accessories on the platform, which eBay purchased for $1.2 billion.

Depop’s user demographic is largely under 34 years old. This acquisition represents eBay’s attempt to cater to a younger audience, shifting away from its traditional auction business model.

CEO Jamie Iannone noted that fashion generates over $10 billion in annual gross merchandise value (GMV) for eBay, with a 10% year-over-year increase in the U.S. for 2025. He framed the acquisition as a chance to enhance their offerings in a rapidly growing market segment targeted at younger consumers.