eBay Layoffs 2026: What’s Happening & Severance Rights in Canada

eBay is eliminating approximately 800 jobs, or around 6% of its global workforce, in 2026. (Bloomberg)

The e-commerce company said the reduction is needed to align its staffing levels with “strategic priorities.”

“We are taking steps to reinvest across our business…which will affect certain roles across our workforce,” eBay said in statement.

“We are grateful for the contributions of the employees impacted and are committed to supporting them with care and respect.”

This page explains:

• What’s happening with eBay layoffs
• Whether a layoff at eBay is permanent
• How much severance eBay employees in Canada may be owed
• What to do before signing a severance offer

eBay Layoffs: A Timeline of Recent Job Cuts

eBay has experienced several restructuring cycles in recent years, with job cuts that have affected teams linked to Canadian operations.

• Jan. 2024: eBay is eliminating 9% of its full-time workforce, or 1,000 jobs, in an effort to make the company “more nimble.”
• Feb. 2023: eBay is cutting 500 jobs, or 4% of its workforce, as it focuses on areas where it can make the most impact.
• Feb. 2019: eBay is reportedly laying off hundreds of employees as it restructures its business.

eBay is a provincially regulated employer — meaning most non-unionized employees are governed provincial employment standards, not the Canada Labour Code.

Is an eBay Layoff Temporary or Permanent?

For non-unionized employees at eBay, a layoff is almost always treated as a termination without cause, even if the following language is used:

• “Restructuring”
• “Reorganization”
• “Transformation”
• “Temporary layoff”

Unless your employment contract explicitly allows for eBay to temporarily lay you off, the company can’t place you on indefinite layoff without terminating your employment — meaning they must provide full severance pay.

Severance Pay for eBay Staff

In Canada, non-unionized employees, including those at eBay, are often owed far more severance pay than what’s outlined in their initial offer.

Severance is based on common law entitlements, not just minimum standards. Factors include:

• Age
• Length of service
• Position and seniority
• Availability of comparable jobs

In many cases, eBay employees in Canada can be owed up to 24 months of compensation.

Severance may include:

• Base salary
• Continued benefits
• Bonus and incentive compensation
• Stock, equity, or RRSP contributions (where applicable)
• Vacation pay
• Other earned compensation

First offers often:

• Cover only minimum entitlements
• Exclude bonuses or incentives
• Impose short signing deadlines
• Undervalue long-service or senior employees

Severance Offers: Common Problems

Canadian employees affected by layoffs frequently report issues such as:

• Severance offers far below legal entitlements
• Missing or unclear compensation breakdowns
• Benefits cut off too early
• Bonuses excluded without justification
• “Temporary layoff” language used improperly
• Pressure to sign within 24–48 hours

Wrongful Dismissal and eBay Layoffs

A wrongful dismissal occurs when major employers, including eBay, fail to provide full severance required under common law.

You may have a claim if:

• Your severance offer is too low
• A termination clause isn’t enforceable
• You were pressured to accept your severance offer on the spot
• Bonuses or benefits were excluded from your severance package
• You were terminated while on medical, parental, or disability leave
• eBay labelled your termination a “temporary layoff” without contractual authority

Large-scale layoffs at eBay don’t reduce their legal obligations in Canada.

Laid Off at eBay? Next Steps

If you’ve been laid off at eBay:

1. Don’t sign your severance offer immediately
2. Gather your employment contract, bonus plans, and benefits information
3. Use the Severance Pay Calculator to double-check your entitlements
4. Keep records of your role, compensation, and length of service
5. Speak with an employment lawyer before agreeing to anything

eBay Layoffs: Frequently Asked Questions

How much severance can eBay employees receive?

Up to 24 months — depending on age, service, and position.

Are eBay layoffs permanent?

For non-unionized employees, yes. A layoff is typically a termination.

Does eBay have to include bonuses in severance?

Often yes — especially if bonuses were a regular part of compensation.

Can eBay terminate employees on leave?

This can raise serious wrongful dismissal and human rights issues.

Can employment lawyers represent unionized eBay staff?

No. Unionized employees at eBay must go through their union.

Lost Your Job at eBay? Get Help Now

If eBay has laid you off, or offered a severance/buyout package, don’t do anything before seeking legal advice.

Samfiru Tumarkin LLP, one of Canada’s most reviewed employment law firms, has helped more than 50,000 Canadians secure the compensation they’re legally entitled to.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and SHOULD NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.