EBay Is Laying Off Its Remaining Web3 and KnownOrigin Team in Manchester as It Exits Its NFT Bet and Pivots to AI and Live Shopping

Key Takeaways

• eBay bought KnownOrigin for $68 million in 2022.
• Remaining Manchester Web3 team laid off after marketplace shutdown.
• Company cut ~800 employees in February restructuring.
• Pivot targets AI‑driven features and live‑shopping integration.
• $1.2 billion Depop deal pending regulator approval.

Pulse Analysis

eBay’s foray into non‑fungible tokens began with the $68 million purchase of KnownOrigin, a UK‑based crypto‑art marketplace. The acquisition was meant to position the e‑commerce giant within the burgeoning NFT space, but the rapid deflation of crypto‑art valuations and waning consumer interest forced eBay to shutter the on‑chain marketplace by the end of 2024. The Manchester team, which had been tasked with integrating blockchain capabilities, was the last vestige of that strategy and was eliminated as part of a broader cost‑cutting wave that saw roughly 800 jobs cut earlier this year.

The layoffs underscore a strategic pivot toward technologies that promise more immediate revenue impact. Artificial intelligence is being deployed to enhance product recommendations, streamline seller onboarding, and improve fraud detection, while live‑shopping features aim to replicate the impulse‑buy dynamics of televised retail. By reallocating talent and capital from a faltering NFT venture to AI‑driven personalization and real‑time commerce, eBay hopes to rejuvenate its core consumer‑to‑consumer marketplace and capture a larger share of the $5 trillion global e‑commerce market.

Looking ahead, the pending $1.2 billion acquisition of Depop—a mobile‑first platform popular with Gen Z—could accelerate eBay’s transformation. If regulators approve the deal, Depop’s social‑shopping DNA will complement eBay’s AI initiatives, creating a hybrid experience that blends community‑driven discovery with algorithmic personalization. Investors will be watching how quickly eBay can integrate these assets and whether the shift away from speculative blockchain projects translates into sustainable growth and improved margins.