EBay cuts 10% of workforce and spends $1.3bn on acquisitions
SAN FRANCISCO - EBay is cutting its global workforce by 10% -- approximately 1,000 jobs -- as well as cutting several hundred temporary jobs and reducing open positions.
The auction company made the announcement yesterday, at the same time as it revealed it had bought US online payment firm Bill Me Later in a deal worth a total of $945m (£540m), and the Danish classified website dbadk, in a $390m cash deal.
EBay said the job cuts were intended to "simplify and streamline" the organisation. While it will deliver longer term savings, the company said that it would incur charges of up to $80m in the fourth quarter of the year.
John Donahoe, president of eBay, said: "While never an easy decision to make, these reductions will help improve our operations and strengthen our ability to continue investing in growth."
The job cuts come after the site revealed a number of changes in the summer, designed to encourage more fixed-price sellers. EBay said that it would make the site more attractive to online shoppers looking for everyday goods, but fans of the auction site were critical of the changes.
Shares in EBay, listed on the Nasdaq stock exchange, fell to their lowest level for five years on Monday following the announcement, and closed at $17.89, down 5.5%.
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