eBay bought Depop for $1.2B — and cut 800 jobs a week later

On February 18, 2026, eBay announced it would buy Depop from Etsy for about $1.2 billion — a bet on the resale habits of shoppers who barely remember eBay's first boom. Depop had generated around $1bn in gross merchandise sales in 2025, with 7 million active buyers — almost 90 per cent of them under 34 — more than 3 million active sellers, and growth of nearly 60 per cent year on year in the US market. Chief executive Jamie Iannone called fashion one of eBay's fastest-growing categories and said the deal would 'deepen its reach with younger, fashion-forward consumers.'

Eight days later, on February 26, eBay cut about 800 jobs — 6 per cent of its 12,300 employees — the third round in three years after 500 cuts in 2023 and 1,000 in early 2024. About a third of the roles were in the Bay Area, including 243 at the San Jose headquarters and 28 in San Francisco. eBay said it was 'taking steps to reinvest across our business and align our structure with our strategic priorities,' based on 'operating model needs, areas of duplication and alignment to future priorities' — with heavy investment in AI, including an OpenAI partnership, running alongside the cuts.

'We have built significant momentum across our strategic priorities, delivering meaningful growth and reinforcing our leadership in re-commerce,' Iannone said. 'As we continue to harness AI to elevate the customer experience worldwide, eBay is in the strongest position it has been in years.' The Depop deal closed on July 31, 2026, with Depop continuing to run under its own brand and platform; its chief executive Peter Semple called joining eBay 'an exciting new chapter'. The buyers were acquired at $1.2bn; the payroll was the offsetting line.