EBay axes 1,000 jobs, buys 3 companies

Online auction giant eBay Inc. said Monday it was cutting about 1,000 permanent employees, reducing its workforce by about 10 per cent.

The San Jose, Calif.-based company also said it was cutting several hundred temporary workers and reducing open positions as part of an effort to streamline its organization.

EBay said it expects restructuring charges of about $70 million US to $80 million US, mostly in the fourth quarter.

The company also released a statement Monday saying itwould buyonline payments business Bill Me Later for $820 million US in cash and $125 million US in outstanding options.

Bill Me Later, founded in 2000, allows online retailers to offer credit and consumers to make deferred payments. EBay already owns online payment form PayPal.

EBayalso announced it had purchased Denmark's leading online classifieds site (dba.dk) and vehicles site (bilbasen.dk) for $390 million US in cash.