State layoff notices put the first hard Bay Area numbers on two companywide cuts of roughly 1,000 jobs each, at companies that say their businesses are growing.
Two of the South Bay’s best-known companies have now told California exactly how many local jobs they are eliminating.
Netflix will permanently lay off 227 workers at its headquarters at 121 Albright Way in Los Gatos, according to a notice posted by the state Employment Development Department’s WARN Act database. A second Netflix notice lists 267 layoffs at 5808 Sunset Blvd. in Los Angeles, for 494 California positions in all. eBay filed a notice for 229 permanent layoffs at its headquarters at 2025 Hamilton Ave. in San Jose.
Together, the two filings account for 456 jobs in Santa Clara County. That is nearly all of the 463 layoffs posted for the county in October in the state’s current WARN report, and about a sixth of the 2,736 the report lists for the county since July 1, according to an Inquirer tally of the state data, which covers notices processed through Oct. 26.
Two cuts, one script
Both companies framed their reductions the same way: a business that is doing well and needs to be leaner to keep doing well.
Netflix co-chief executives Ted Sarandos and Greg Peters told employees on Oct. 14 that the company would let go of “roughly 6% of our colleagues, with the greatest impact to our product, tech, legal, and HR teams,” in a memo obtained by CNBC and published in full by the Too Much TV newsletter. “Our business is strong and growing, and we remain on track to deliver our full year forecast,” they wrote. CNBC put the total at roughly 1,000 workers. Netflix had about 16,000 employees at the end of 2025, the San Francisco Chronicle reported, citing regulatory filings, and the Chronicle described the round as the company’s largest to date; its 2022 cuts totaled about 450 positions.
eBay disclosed its plan in an Oct. 20 filing with the Securities and Exchange Commission, saying it would reduce its global workforce by about 9 percent, roughly 1,000 people, according to CNBC. In the same filing, it said it expects third-quarter results above the guidance it gave in August.
Asked about the San Jose notice, an eBay spokesperson sent The Inquirer a statement. “Last week, we shared the difficult news that we plan to reduce a portion of our workforce,” the spokesperson said. “As we work to capture the significant opportunity ahead, this step was taken to ensure we continue to operate from a position of strength by aligning our teams and resources with our top strategic priorities. We are grateful for the contributions of these colleagues, and are committed to supporting them through this transition with care and respect. The changes are global in scope, spanning all regions where we operate. Our decisions were driven by a focus on the work and capabilities eBay needs to execute its strategy, and based on where we could simplify structures, move faster, and align resources to our highest priorities.”
Netflix told CNBC it had no comment beyond the co-CEOs’ memo.
What the numbers say, and what they leave out
Netflix reported third-quarter revenue of $12.87 billion, up 12 percent from a year earlier, and net income of $3.66 billion, up about 44 percent, according to its quarterly filing. eBay estimated in its SEC filing that the restructuring will cost $130 million to $150 million in pre-tax charges, substantially all of it severance and post-employment benefits, mostly booked in the fourth quarter, with the job cuts substantially complete by the end of the first quarter of 2027. The company said the savings would go toward its “strategic and operating initiatives.”
The filings leave several things unsaid. Neither WARN notice breaks out job titles in the state’s summary data, so it is not yet clear how many of the Los Gatos cuts fall in the product and engineering teams the Netflix memo singled out. eBay’s SEC filing says decisions are subject to local law and consultation requirements abroad, meaning the final global count could shift.
The dates are also unusual. Both Netflix notices are dated Oct. 16 and were received by the state Oct. 19, but list an effective date of Sept. 14, nearly a month before the memo. California’s WARN Act generally requires 60 days’ notice before a mass layoff at a covered establishment, and employers that fall short can owe back pay and benefits for the shortfall. The state data do not explain the date, and the notices do not say whether Netflix is paying affected employees through a notice period. eBay’s notice lists Oct. 21 as its notice, receipt and effective date.
Nor is this eBay’s first round this year. The company cut about 800 jobs, about 6 percent of its workforce, in February, CNBC reported, and in July closed its $1.4 billion purchase of the clothing-resale app Depop from Etsy. eBay had about 12,300 employees at the end of 2025.
A rising South Bay tally
The two notices add to a year that has already outpaced the last one. Tech companies have disclosed plans for nearly 14,500 Bay Area layoffs so far in 2026, already more than the 10,170 tech job cuts in state filings for all of 2025, according to a Mercury News review of WARN notices. The Inquirer analyzed that trend last week.
What sets this pair apart is that neither company is retrenching from weakness. eBay told CNBC it will keep hiring in “priority areas aligned with our strategy,” and Netflix’s co-CEOs promised to “invest aggressively in high-impact areas.” For the 456 people in Los Gatos and San Jose, the growth story is happening somewhere else on the org chart.
Wendell Yamashiro covers business, technology, labor, trade and the Bay Area economy for Trade and Commerce. More from Wendell Yamashiro
