eBay has disclosed a sweeping restructuring plan that will eliminate 1,200 jobs, representing roughly 15% of its global workforce, as part of a broader effort to streamline operations and accelerate digital transformation. The move marks a pivotal step in the company’s ongoing strategy to enhance long-term competitiveness.
- 1,200 positions eliminated, representing 15% of eBay’s global workforce
- Annual cost savings target of $180 million by end of fiscal 2027
- Focus on reinvestment in AI-driven search, mobile experience, and seller tools
- Revenue growth of 3.2% in the last fiscal year, below market expectations
- 22% increase in active sellers during the most recent quarter
- Stock rose 7.3% in after-hours trading post-announcement
eBay has initiated a comprehensive workforce reduction, announcing the elimination of 1,200 positions across multiple departments, including technology, operations, and corporate functions. The restructuring affects employees in North America, Europe, and parts of Asia, with severance packages and outplacement services being offered to impacted staff. The company emphasized that the decision was driven by the need to realign resources toward high-growth areas such as marketplace innovation and seller tools. The 1,200 job cuts represent approximately 15% of eBay’s total global workforce, a significant reduction that signals a strategic pivot away from legacy business models. The company cited declining revenue growth in core marketplaces and increasing competition from digital commerce platforms as key factors behind the restructuring. Over the past fiscal year, eBay’s revenue increased by just 3.2%, falling short of analyst expectations and prompting leadership to reassess organizational efficiency. In a statement, eBay’s CEO confirmed that the company expects the reorganization to yield annual cost savings of $180 million by the end of fiscal 2027. These savings will be reinvested into platform enhancements, AI-driven search algorithms, and mobile experience upgrades. The company also highlighted a 22% increase in active sellers on its platform during the last quarter, signaling renewed focus on strengthening the seller ecosystem. Wall Street reacted positively, with eBay’s stock rising 7.3% in after-hours trading following the announcement. Investors welcomed the clarity around cost discipline and long-term vision, though some analysts cautioned that aggressive restructuring could risk employee morale and customer-facing innovation if not managed carefully.