eBay to cut work force by 10%

SAN JOSE, Calif. eBay has announced plans to reduce its global work force by approximately 10%, affecting about 1,000 employees in addition to several hundred temporary workers and the reduction of open positions. The reduction is expected to result in pretax restructuring charges of approximately $70 million to $80 million, with the charges predominantly recorded in the fourth quarter of 2008.

“We are making aggressive moves to strengthen our leadership positions in e-commerce and payments to competitively position our company for long-term growth,” said John Donahoe, eBay's president and chief executive officer.

Commenting on the company’s work force reduction, Donahoe said, “While never an easy decision to make, these reductions will help improve our operations and strengthen our ability to continue investing in growth.”