WASHINGTON, Oct 6, 2008 (AFP) - Online auction giant eBay Inc. announced on Monday that it was cutting 1,000 permanent employees and several hundred temporary workers, about 10 percent of its global workforce.

'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.

EBay said the global workforce reduction was intended to simplify and streamline its organization, improve the company's cost structure and strengthen the overall competitiveness of existing businesses.

In a statement released by its San Jose, California, headquarters, eBay also said it was acquiring US online payments business Bill Me Later for 820 million dollars in cash and 125 million dollars in stock.

EBay said it has also purchased Denmark's leading online classifieds site dba.dk and vehicles site bilbasen.dk for 390 million dollars in cash.