eBay Cuts 1,000 Jobs as Stock Rides 41% Rally to Near Record High

eBay will lay off about 1,000 employees, roughly 9% of its workforce, in the online marketplace's second round of mass job cuts this year. CEO Jamie Iannone broke the news in a memo to staff, Reuters reported, and an eBay spokesperson confirmed the plans, saying about 1,000 workers would lose their jobs.

The timing is striking. EBAY shares have surged 41% since the start of the year, closing yesterday at $122.90, near an all-time high. The tech-heavy Nasdaq 100 managed just under 15% over the same period.

How big is this round of cuts?

The new round is about 25% larger than the one eBay launched in February, when it cut roughly 6% of its then-workforce, or about 800 positions. As of the end of last year, the company employed about 12,300 people globally.

Combined, the two rounds have eliminated roughly 1,800 roles in under a year. Fast Company reached out to eBay for comment on the latest cuts.

The layoffs land mid-pivot. EBay, one of the dotcom era's darlings, built its name on online auctions and gave ordinary people an easy way to sell goods for extra cash. But decades of competition, most notably from Amazon, has eaten into its popularity and its bottom line.

Why is eBay restructuring now?

To differentiate itself on a crowded field, eBay has pivoted toward becoming a marketplace for collectibles, second-hand luxury goods, and high-value refurbished products. The company has also poured money into artificial intelligence and closed a $1.4 billion acquisition of the fashion resale marketplace Depop earlier this year.

Those bets, in the company's view, necessitate cost reductions through layoffs.

"[C]ontinuing to capture the significant opportunity ahead requires us to make thoughtful choices about where we focus and invest," Iannone told staff in the memo.

The CEO was blunt about the broader picture. "Our strategy is working," Iannone wrote in the same memo, according to Reuters.

What do the numbers say about that claim?

From an investor's standpoint, it's hard to argue. In early August, eBay reported results for its second quarter of fiscal 2026, disclosing:

• Revenue of $3.1 billion, up 15% year over year
• Net income of $552 million, up 51% year over year

That earnings acceleration, paired with the stock's 41% run this year, has made eBay one of Wall Street's winners in 2026. The rally to $122.90 puts the shares near their all-time high.

The cuts, then, read less like distress and more like consolidation. EBay is shrinking its headcount by roughly a quarter since February while its profits grow at double the pace of its revenue — a combination investors typically reward.

What happens next?

The next test arrives Wednesday, when eBay is scheduled to announce its Q3 2026 results. Investors will be watching whether the collectibles-and-luxury strategy, the Depop integration, and AI investments can sustain the growth that has justified both the stock's rally and the shrinking payroll.