eBay will buy online payments business Bill Me Later for $820 million in cash and $125 million in outstanding options. Bill Me Later, founded in 2000, is the number two online payments company after PayPal.
eBay also announced this morning that it was cutting 1,000 permanent employees and several hundred temporary workers, which equals about 10 percent of its global workforce.
From the Associated Press:
EBay Inc. said on Monday it will cut about 1,000 employees, reducing its work force by about 10 percent.
The online auction site 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 Oct. 15.
From AFP:
EBay, in a statement released by its San Jose, California, headquarters, also said it was acquiring US online payments business Bill Me Later for 820 million dollars in cash and 125 million dollars in employee options.
EBay said the global workforce reduction was intended to simplify and streamline its organization, improve the company’s cost structure and strengthen the overall competitiveness of existing businesses.
“While never an easy decision to make, these reductions will help improve our operations and strengthen our ability to continue investing in growth,” said John Donahoe, eBay’s chief executive.
The job cuts are expected to result in pretax restructuring charges of approximately 70 million dollars to 80 million dollars, with the charges predominantly recorded in the fourth quarter of 2008, eBay said.
Kreuzer's Korner 
Recent Comments