"The Depop acquisition gives eBay access to Gen Z shoppers-90% of Depop's users are under 34-but the company needs to fund that growth by cutting costs elsewhere. EBay is essentially trading current employees for future market position-a risky move that shows how intense the e-commerce competition has become."
"While Amazon and Walmart dominate general e-commerce, newer platforms like TikTok Shop, Temu, and Shein are eating into eBay's market share with younger consumers. The timing shows eBay's urgency to compete with faster-growing rivals."
eBay announced a 6% workforce reduction of 800 employees shortly after acquiring fashion resale app Depop from Etsy for $1.2 billion. The acquisition targets Gen Z consumers, with 90% of Depop users under 34, addressing eBay's challenge from faster-growing competitors like TikTok Shop, Temu, and Shein who are capturing younger shoppers. While Amazon and Walmart dominate general e-commerce, these newer platforms are eroding eBay's market share. eBay's focused categories including fashion, collectibles, and car parts achieved 16% growth last quarter, yet this remains insufficient to match competitor growth rates. The job cuts fund the Depop integration, representing a strategic trade-off between current workforce and future market positioning in an intensely competitive e-commerce landscape.
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