Commenting on the move to cut down its workforce, eBay's President and Chief Executive John 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."

Meanwhile, eBay has also announced the acquisition of three firms US-based online payments business 'Bill Me Later' and two Danish sites online classifieds site 'dba.bk' and vehicles site 'bilbasen.dk'.

The buyouts would help in strengthening its position in online payments and classifieds.

'Bill Me Later' would be acquired for about 820 million dollars in cash and another 125 million dollars in outstanding options. While eBay would buyout dba.bk and bilbasen.dk for nearly 390 million dollars in cash.

"We are making aggressive moves to strengthen our leadership positions in e-commerce and payments to competitively position our company for long-term growth.

"... The acquisition of dba.dk and bilbasen.dk gives us technology and expertise we can leverage across our classifieds portfolio to create better customer experiences," Donahoe said.