Posted October 6, 2008 3:01 pm by with 12 comments

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When auction revenue falls, eBay decides to bank on payment processing and online classifieds. eBay is buying online bill pay service Bill Me Later and two other companies which are based in Denmark.

They’re also spending quite a bit of cash – around $1.3 billion including Danish companies Den Bla Avis and BilBasene. Total spend comes to about $1.3 billion.

Bill Me Later is an online layaway program where you can make payments on a purchase. eBay will then use PayPal to process the payments. As of last month eBay stopped taking money orders or checks for payment in the US – essentially forcing everyone to use PayPal.

Today, announced that they are accepting PayPal as an option to pay for purchases on the site.

To boost third quarter results, and perhaps to help fund the new purchases, eBay will axe 10% of their workforce across the world. That amounts to around 1,000 people losing their jobs.

In the US eBay has lost out to free online classifieds like Craigslist (which it’s in legal battles with and part owner of) and are aggressively expanding into other countries.

To get more details about eBay’s announcements you can listen to an investor conference call today (Monday, October 6, 2008) at 5:30 a.m. PDT. Or you can watch a webcast live or achived at

  • that’s too bad about the jobs though. 🙁

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  • This is probably only the beginning of the job cuts too.

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  • It really sucks for the thousands that lost their jobs, hopefully they get a better job elsewhere. With Walmart allowing PayPal now I’m sure they will be getting a lot of online sales now.

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  • PS3

    Every day there is another helping of bad tidings coming out of the USA, UK or Europe. Not sure where it is all going to end.

    Sympathies go to all those affected.

  • That really sucks that people will lose their jobs, I guess that’s what they gotta do if they want to expand

  • This is bad for the many that will lose their jobs over this. It’s strange how this chain works, a single company keeps their profit margin high at the expense of a large number of people losing their job, hence being poor. So a handful of people remain rich as a thousand get poor.

  • A handful gets richer whilst thousands more suffer with each “consolidation”

  • Capitalism at its best in a globalized world. Those 1000 will find their feet fast enough not to worry.

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  • Yikes. This seems pretty rough for the workers, their company basically just came out and said that they would rather buy a bunch of other companies to do their work rahter than continue paying them…

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  • Sad to hear about the jobs being lost. I know paypal is safe but it’s a shame that eBay are forcing people to use it.


  • Safe is a relative word, and that’s just pure greed.

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  • Even with the current stats, I still believe Ebay have not enough staffs and now they are cutting the numbers down?