US e-commerce large eBay is assembly with its workers in Netanya inform them it’s shutting down its R&D middle, after twenty years of exercise in Israel. Practically 200 workers will lose their job as a part of the transfer, after the corporate has already carried out a number of waves of layoffs that primarily affected advertising and gross sales actions in Israel. Now software program growth exercise is being axed, thought of nearer to the corporate’s core enterprise.
eBay’s loyalty to its actions in Israel was additionally examined after the outbreak of the warfare, when in June 2024 about 40 workers have been laid off. On the time, the corporate claimed that this was an “a streamlining measure adapting to the corporate’s clients,” however that the R&D middle in Israel was nonetheless “an integral a part of eBay’s skill to comprehend its product technique.”
However as we speak eBay says, “After cautious consideration, we have now made the troublesome determination to shut our workplace in Israel throughout the first quarter of 2026. We’re dedicated to persevering with to supply assist and accompany our workers all through the transition course of. As a world firm, eBay is constantly evaluating its working mannequin consistent with its long-term strategic objectives, and with a purpose to optimize assist for patrons and workers.”
Experiencing development – however removed from the profitability demonstrated up to now
eBay has been shrinking and enterprise harm management lately. Studies within the US say eBay additionally plans to shut its New York places of work, which is predicated on the acquisition of TCGplayer, an organization that trades enjoying playing cards, and switch operations to eBay’s places of work in Kentucky. The operations in New York have about 220 unionized workers with collective agreements.
eBay is dealing with stiff competitors from Amazon and Walmart, and Chinese language firms reminiscent of Temu and Shein, which have weakened barely just lately after the cancellation of the responsibility exemption on imports of discounted merchandise from China to the US.
Regardless of this, eBay has truly skilled development over the previous yr, each in its share value, which has risen 33% over the yr, and within the variety of customers, which has resumed development. Within the first quarter of 2022, eBay had 138 million customers, subsequently dropping to 131 million. However as of the tip of March 2025, the quantity had grown to 134 million. Nonetheless, the corporate continues to be removed from the good profitability demonstrated throughout the Covid years – its earnings then contracted tenfold and haven’t grown considerably since then.
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The corporate, presently headed by eBay Israel basic supervisor Amir di-Nur, started operations in Israel with the acquisition of the startup Procuring.com in 2005 for $620 million, and at its peak, it employed about 350 workers within the Netanya middle. The present wave of layoffs and the closure of the Israel middle is the fourth wave of dismissals right here in two years. In 2023, eBay laid off 30 workers in Israel, at first of 2024 one other 20 workers have been laid off, and in June final yr 40 workers. At the moment, 50 workers remained, and since then, a further 50 workers have apparently left. In line with LinkedIn, the corporate presently employs over 190 folks in Israel.
In an intensive article on the state of the event middle printed final yr, many workers expressed concern in regards to the closure of operations in Israel because of the warfare and eBay’s weakening in opposition to its rival Amazon. eBay’s state of affairs has truly improved, however the warfare stays.
eBay has overwhelmed Amazon’s share value rise the previous yr – its inventory rose by 33% in comparison with Amazon’s share value, which rose by solely 14%, nevertheless it was decrease than Walmart with 50% rise and Shopify with 87%.
Revealed by Globes, Israel enterprise information – en.globes.co.il – on Could 28, 2025.
© Copyright of Globes Writer Itonut (1983) Ltd., 2025.
