Silicon Valley-based eBay said yesterday it is laying off about 10 percent of its global workforce, while spending more than US$1 billion to buy companies to buttress its business.

The layoffs are affecting about 1,000 full-time employees and about several hundred temporary workers, according to a company statement. Although a company statement put the number of laid off temporary employees at "several hundred," company spokesman Jose Mallabo declined to be more specific and wouldn't speculate. EBay has nearly 16,000 workers worldwide.

After the announcement, eBay's stock fell 1.05 dollars to 17.89dollars at the close of trading.

EBay's statement said the reductions were needed "to simplify and streamline eBay's organization, improve the company's cost structure and strengthen the overall competitiveness of the company 's existing businesses."

Because of the layoffs, eBay said it would incur a restructuring expense of 70 million to 80 million dollars, mostly in the fourth quarter.

"While never an easy decision to make, these reductions will help improve our operations and strengthen our ability to continue investing in growth," said John Donahoe, eBay's chief executive officer and president.

The company also said it was bolstering its operations with key acquisitions, with plans to buy Timonium, Maryland-based Bill Me Later with 820 million dollars in cash.

While eBay's online payment service, PayPal, handles many small business and individual transactions, Bill Me Later specializes in working with major retailers, including Apple, Borders, Continental Airlines and Toys "R" Us.

"We focus on the top of the tier, trying to get to where the money is," said Mark Lavelle, Bill Me Later's vice president of corporate development. "Big customers and large volume is where we' ve staked out our market."

"By combining the best of PayPal and Bill Me Later, we can offer an even stronger service for consumers and merchants," said PayPal President Scott Thompson.

That deal is expected to be completed by the end of the year.

EBay also said it has bought the Danish online classified-advertising sites Den Bla Avis and BilBasen for 390 million dollars in cash.