Key Highlights
- The e-commerce platform is eliminating approximately 800 positions, equating to 6% of its total staff
- Job reductions affect multiple departments as part of a company-wide reorganization
- The company finalized a deal to purchase Depop from Etsy for approximately $1.2 billion
- Fourth quarter revenue jumped 15% to reach $2.97 billion, exceeding analyst forecasts
- First quarter revenue guidance ranges from $3 billion to $3.05 billion
The online marketplace giant revealed Thursday plans to eliminate roughly 800 positions from its workforce, which currently stands at approximately 12,300 employees globally.
Company leadership characterized the workforce reduction as an essential component of a comprehensive initiative to “reinvest across the business” and better synchronize operations with strategic objectives.
The company hasn’t disclosed a specific implementation schedule for the job eliminations, nor has it indicated whether any restructuring expenses will be recorded.
The workforce reduction impacts various business units, with determinations made according to operational requirements, redundant functions, and strategic direction.
According to the company’s latest SEC documentation, roughly 60% of its employees work within the United States.
This workforce announcement follows closely after eBay finalized its acquisition of Depop — the pre-owned fashion marketplace currently owned by Etsy — in a transaction valued at roughly $1.2 billion in cash.
Chief Executive Jamie Iannone emphasized that bringing Depop into the fold would strengthen eBay’s position in the fashion sector, which ranks among its most rapidly expanding categories. Approximately 90% of Depop’s active users fall under the age of 34.
Financial Results Overview
The company posted fourth quarter revenue totaling $2.97 billion, representing a 15% year-over-year increase that surpassed Wall Street projections.
Gross merchandise volume climbed 10% to reach $21.2 billion. Transaction volume from priority categories — encompassing collectibles, automotive parts, and refurbished merchandise — expanded by more than 16% compared to the previous year.
Adjusted earnings reached $1.41 per share, exceeding the analyst consensus of $1.35. However, net profit declined to $528 million from $679 million during the comparable quarter last year.
Artificial Intelligence and Market Competition
The platform has been accelerating its artificial intelligence initiatives while simultaneously implementing cost reduction measures. The company has integrated AI capabilities into internal operations and customer-facing features, and has established a collaboration with OpenAI focused on an agentic web browser.
This represents another chapter in ongoing workforce adjustments. The company has been systematically reducing headcount over recent years as it attempts to maintain competitiveness against industry giants like Amazon and Walmart, along with emerging competitors including TikTok Shop, Temu, and Shein.
Earlier in the week, the company also finalized a settlement agreement with a Massachusetts couple who experienced stalking and harassment from former staff members upset about their e-commerce publication. Settlement details remain confidential.
Looking ahead to Q1 2026, the company projects adjusted earnings between $1.53 and $1.59 per share with revenue ranging from $3 billion to $3.05 billion. Wall Street analysts had anticipated $1.57 per share on revenue of $2.99 billion.
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