The world’s largest online auction site, eBay Inc. has announced that it will cut its global workforce by almost 10% in a bid to streamline its business.

On Monday, eBay declared that it would be pruning its workforce by 10% which would affect around 1000 employees across the world. The job cuts would also lay off several hundred temporary workers and lead the company to incur pre-tax restructuring charges of $70 million to $80 million. The restructuring expenses were expected to show up in the results of fourth quarter of 2008, according to company representatives. eBay claimed that the restructuring step was being taken to improve the company’s operations as well as to strengthen its ability to invest in growth.

In a separate announcement, eBay declared that it was ready to acquire the online payment business Bill Me Later for around $820 million and $125 million in outstanding options. Other than this, eBay was also in talks of taking over the leading online classified site of Denmark, dba.dk, for around $390 million in cash.

Analysts have forecast third quarter revenue for eBay in the range of $2.1 billion to $2.15 billion while experts from Thomas Financial expect the company to earn 41 cents a share on sales of $2.16 billion.