In the midst of major economic crisis, eBay drops a cool $1.34 billion for online payment business Bill Me Later and two Danish auction sites. eBay also announced yesterday that it will be laying off approximately 1,000 employees, 10 percent of its workforce. 

The cutbacks come as no surprise, while the acquisitions help eBay to become a stronger player in online payments and classifieds. These latest moves by eBay are a great example of smart growth strategy during tough times. eBay’s third quarter earnings were even lower than expected, but instead of playing it safe and only focusing on cost-cutting, eBay is investing a ton of money in the future of its business.

Bill Me Later is meant to be complementary to PayPal, which eBay already owns. “Together, PayPal and Bill Me Later will make online payments safer, easier and more convenient than ever,” according to eBay president and CEO John Donahoe.

Overall, the changes that are occurring at eBay are on the right track to giving the company a much-needed boost. It may seem cruel to make such drastic cutbacks in employment, but eBay is accountable to its shareholders and it would be irresponsible for the company to allow things to continue down its current path. It is after all still a business and needs to function as such.

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