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EBay to cut 1,000 jobs

Ap
Monday 06 October 2008 09:55 EDT
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The online auction site EBay Inc. said today it will cut about 1,000 employees, reducing its work force by about 10 per cent.

The company also said it will get rid of several hundred temporary workers and reduce open positions.

EBay said the reductions would streamline its organization. The company said it expects restructuring charges of about $70 million to $80 million, mostly in the fourth quarter.

EBay also said its third-quarter earnings would be higher than it predicted in July, although revenue will be at the low end of its expectation. It is scheduled to announce third-quarter results on 15 October.

On July 16 eBay said it expected third-quarter earnings between 30 cents and 32 cents per share, and revenue between $2.1 billion and $2.15 billion.

EBay also said it will buy online payments business Bill Me Later for $820 million in cash and $125 million in outstanding options. The company also said it will buy Danish classifieds site dba.dk and vehicles site bilbasen.dk for $390 million in cash.

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