Feeds

eBay cuts jobs, buys credit firm

Credit? What could possibly go wrong?

The Essential Guide to IT Transformation

eBay is laying off 1,000 staff and getting rid of hundreds of temporary positions at the same time as it buys three companies.

The job cuts will come at eBay offices around the world, and will cost the firm between $70m and $80m.

John Donahoe, the online tat house's chief executive, said of the redundancies: “While never an easy decision to make, these reductions will help improve our operations and strengthen our ability to continue investing in growth.”

In other news, eBay has paid $945m for an online credit firm called Bill Me Later - $820m of this is in cash and $125m in outstanding options. eBay is also buying two Danish classified firms - dba.dk and bilbasen.dk for $390m in cash.

eBay said Bill Me Later was a natural partner to PayPal. The company provides instant credit to consumers shopping online. When you get to the checkout of one of the 1,000 online shops which accept it, you can enter your birthday and the last four digits of your social security number instead of paying by credit card. It uses its "sophisticated underwriting techniques and credit decision model" to approve shoppers in seconds.

Bill Me Later will then send you a monthly bill which you can pay by cheque. It aims to attract the large number of shoppers who are nervous of using their credit cards online. Investors in Bill Me Later include Citgroup, Amazon and Equifax.

eBay expects the deal to bring in $150m in revenues in 2009 but to dilute GAAP earnings by $0.13 per share for the year. eBay predicts it should add to earnings by 2011.

The Danish classified sites are added to eBay's stable of similar websites including Kijiji and Gumtree. The firm claims an online classified presence in 20 countries.

eBay's SEC filings are available from here.

eBay said it expects to hit the bottom end of targets for sales for the third quarter - full results will be announced 15 October. ®

Boost IT visibility and business value

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.