eBay Cuts 800 Jobs in Major Layoff as It Strengthens AI and Operational Efficiency Amid Global Competition

Global e-commerce giant eBay has announced plans to cut approximately 800 employees, equivalent to 6 per cent of its entire workforce. An eBay spokesperson confirmed that the mass redundancy decision forms part of the company’s effort to strengthen operational structure and enhance efficiency. The company has acknowledged the contributions of affected employees and committed to providing support during the transition period.

“We are taking steps to reinvest across our business and align our structure with strategic priorities, which will impact some roles across our workforce,” stated an eBay spokesperson in an official statement cited from CNBC International on Sunday, 1 March 2026.

The redundancies will target workers across various divisions based on operational model requirements, reduction of duplicate functions, and alignment with the company’s future priorities. As of 31 December 2025, eBay had approximately 12,300 employees worldwide.

The redundancy announcement emerged shortly after eBay reached a legal settlement following reports that former employees had harassed individuals. The victims were David Steiner and Ina Steiner, a couple and founders of the EcommerceBytes blog. They alleged they were stalked and harassed by angry employees over coverage published on the company’s EcommerceBytes blog. Following these actions, two former eBay executives were sentenced to imprisonment, and the incidents damaged the company’s public reputation.

Focus on AI and Operational Efficiency

In recent years, eBay has progressively reduced its workforce whilst increasing investment in artificial intelligence technology. The company has implemented various AI-based tools internally and integrated the technology to enhance the experience of both buyers and sellers on its platform.

eBay has also partnered with OpenAI to develop agentic web browser-based technology. This collaboration is expected to strengthen the company’s competitive position in an increasingly digital and competitive era.

The move comes amid intense competition with major e-commerce players such as Amazon and Walmart, as well as rapidly expanding marketplace platforms including Etsy, TikTok Shop, Temu, and Shein.