posted on October 6, 2008 01:48:40 PM new
SAN JOSE, Calif. (AP)- 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.
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.
posted on October 6, 2008 05:25:48 PM new
Growth is generally good for a company but, like most everything else, too much of a good thing can be unsustainable. At some point, companies should stop, get a breath, and focus on improvements in their core business. I'm not an economist but seems to me many companies have gone belly-up when they tried to expand too agressively.
