Ebay has decided to lay off 1,000 employees which is a 10% cut from itâ€™s existing number of employees. Besides cutting employee numbers eBay today also announced the acquisition of two new businesses : Bill Me Later (for $820 Million in Cash and $125 Million in Options) and two online classified sites based in Denmark for approximately $390 million.
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 Donahue, eBay Inc.â€™s president and CEO.
Bill Me Later will work in conjunction with eBayâ€™s Pay Pal, and the classified sites, dba.dk and bilbasen.dk, will help them expand in Europe, says Donahue.
A report in Barron’s last month described the business as “deteriorating,” and rumored that the company might cut up to 1,500 employees.
The rumors also say that eBay is trying to sell StumbleUpon which they acquired for a whooping $75 million in 2007. With all the recent changes it sure looks like a possibility.
Please follow the link to read eBayâ€™s announcement regarding employee layoffs and their recent acquisitions : Official announcement.