eBay to cut about 9% of workforce in restructuring plan
The plan aims to align teams and resources with top strategic priorities. Charges are expected mainly in the fourth quarter of 2026.
Key takeaways
- eBay Inc. (EBAY) said on Oct. 20 it will cut approximately 9% of its global workforce under a restructuring plan. Charges of $130 million to $150 million, largely severance, are expected mainly in the fourth quarter of 2026. It also expects third-quarter results above its guidance ranges.
eBay Inc. (EBAY) said on Oct. 20 it will reduce its current global workforce by approximately 9% under a restructuring plan intended to align its teams and resources with its top strategic priorities.
The company said decisions on eliminating positions are subject to local law and consultation requirements in certain countries, as well as its business needs.
In a regulatory filing, eBay said it currently estimates GAAP pre-tax charges of $130 million to $150 million. Substantially all of the charges are expected to relate to severance payments and post-employment benefits.
Most of the charges will be recognized as incurred in the fourth quarter of 2026, and the full amount is expected to result in future cash expenditures.
The employee restructuring actions are expected to be substantially complete by the end of the first quarter of 2027, subject to local law, consultation requirements and the company's business needs.
The company expects that expense savings from the plan will be used to further eBay's strategic and operating initiatives. It may also incur other charges or cash expenditures not currently contemplated, including in connection with carrying out the plan.
Separately, the company said it expects to report results for the quarter ended Sept. 30, 2026 above the guidance ranges it gave in its August 2026 earnings announcement.
The filing does not give the amount by which third-quarter results are expected to exceed those ranges.