eBay slashes 800 jobs despite strong revenue and $1.2 billion Depop acquisition

eBay, the e-commerce giant that pioneered online auctions and marketplace selling, is cutting 800 jobs, about 6% of its full-time workforce, marking the third time the company has laid off employees in three years.

The company announced the cuts on Thursday, saying it needs to “align its structure with strategic priorities” and will reinvest savings into other parts of the business. Bloomberg first reported the layoffs.

The timing is notable. Just last week, the company reported a fourth-quarter revenue of $3 billion, a 15% jump that beat analysts’ expectations. The same week, it also announced it was acquiring Depop, a secondhand clothing app popular with Gen Z shoppers, from Etsy for $1.2 billion in cash.

Why eBay keeps cutting jobs despite growing revenue

This is the third round of layoffs eBay has done since 2023. In early 2024, the company cut 1,000 jobs, about 9% of its workforce, saying labour costs had grown faster than revenue. In 2023, it laid off 500 employees, or 4% of its staff, blaming reduced consumer spending after the pandemic shopping boom ended.

The pattern is clear: the company is growing revenue but shrinking headcount. It is betting on itself to operate more efficiently with fewer people, using automation and streamlined processes to handle more business without proportionally increasing staff.

For employees, this creates uncertainty. Even teams working on profitable products aren’t safe if leadership decides the structure doesn’t match long-term strategy. The company says it will continue hiring in “key areas,” but hasn’t specified which roles or departments.

The Depop bet and Gen Z strategy

The $1.2 billion Depop acquisition points to how eBay wants to grow. Depop attracts younger shoppers who buy and sell vintage and secondhand clothing, a demographic eBay has struggled to capture as its user base ages.

It’s surprising that after acquiring Depop for over a billion dollars with the intention of expanding, the company then laid off 800 employees. This implies that eBay valued Depop for its unique skills or technology, rather than simply its user base.

As a result, there may have been overlap in job roles between existing eBay employees and new Depop employees, leading to redundancies.

eBay said it is committed to supporting affected employees “with care and respect,” the standard language companies use during layoffs. No details were provided on severance packages or which departments are most affected.

eBay’s focus on efficiency mirrors a tech-wide trend where profit is prioritized over increasing staff, even with strong revenue. Companies are boosting profits by cutting costs rather than investing in more employees.

The 800 employees losing their jobs are collateral damage in eBay’s push to stay competitive in an e-commerce market dominated by Amazon and challenged by newer platforms like Poshmark, Mercari, and now its own acquisition, Depop.

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