EBayAnnounces 1000 Layoffs - Purchase of Bill Me Later

Online auction giant eBay has announced that it will lay off 1,000 employees, roughly 10% of its workforce, eliminate several hundred temporary workers and reduce open positions. Faced with slowing growth in its auction service, the company has been retooling the direction for the sales side of the business. Payment processor Paypal has been bolstering the company’s bottom line and as an augmentation to its Paypal service, eBay has purchased Bill Me Later, a payment site that handles deferred payments for online transactions, for $820M in cash and another $120M in options. The company will be folded into the Paypal stable and be run by Paypal President Scott Thompson.