eBay to Cut 1,000 Jobs and Buy ‘Bill Me Later’

San Jose, Calif. eBay announced late Monday that it will lay off about 10% of its global workforce—or 1,000 full-time and several hundred temp workers. The company, which currently has about 16,000 workers, will also eliminate positions that have not yet been filled.

Simultaneously, the company announced it would spend more than $1 billion on acquisitions intended to shore up the business.

It said it will pay $820 million in cash and assume $125 million worth of outstanding employee stock options for Bill Me Later, which is headquartered in Timonium, Md., and has an office in San Francisco.

While eBay's online-payment service, PayPal, handles many small-business and individual transactions, Bill Me Later specializes in working with major retailers, including Apple, Borders, Continental Airlines and Toys "R" Us.

That deal is expected to be completed by the end of the year.

eBay also said it has bought the Danish online classified-advertising sites Den Bla Avis and BilBasen for $390 million in cash.

Because of the layoffs, eBay said it would incur a restructuring expense of $70 million to $80 million, mostly in the fourth quarter.

"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 president and CEO.

The latest cuts follow eBay's announcement in March that it was laying off 125 employees.