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eBay to cut 10% of jobs, exceed profit view

  eBay Inc plans to cut its workforce by 10% and expects to exceed its Q3 earnings forecast, the online auction Web site said on Monday as its shares rose nearly 2% in pre-market trading.

 

eBay also said it is acquiring the Bill Me Later payments service for about $820 million in cash and $125 million in options. It is also buying Danish online classifieds businesses Den Bla Avis and BilBasen for about $390 million.

eBay expects the job cuts would affect about 1,000 employees and several hundred temporary workers. The reduction is expected to incur restructuring charges of about $70 million to $80 million, occurring mostly in the fourth quarter. For the Q3, eBay expects to hit the low end of its revenue forecast and exceed its earnings forecast. The San Jose, California-based company is scheduled to announce Q3 results on Oct. 15. eBay shares rose to $19.30 in pre-market trading from their close of $18.94 on Friday. (Reuters)