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eBay like many of the companies has decided to pay heed to the ongoing economic crisis and laid off 10% or a 1000 staff members worldwide. This major restructuring is set to hit eBay’s pocket with an estimated $80 million.
And that’s not it, eBay plans to expand its business with major deals that involve a $380 million acquisition of Denmark based DBA and BillMeLater for $945 million; $820 million of which will be paid in cash. The current measures include an immediate cut on temporary staff owing to the fall in share prices that have taken record plunge dropping by a mammoth 40% to $17.40 a share. Previously the stocks hit the record high $40.73 a share.
BillMeLater is an alternative payment firm just like PayPal; enabling customers to make purchases across 1,000 sites without the need to have a credit card. DBA on the other hand is the leading classified site in Denmark owned presently by Blue Alvis; a free newspaper with a weekly circulation of 500,000. John Donahoe, eBay Inc.’s president and CEO stated:
We are making aggressive moves to strengthen our leadership positions in e-commerce and payments to competitively position our company for long-term growth.
Aggressive indeed, but one feels sorry that the investment eBay plans at making for growth steps upon employee reduction.
