U.S. Internet auction house eBay Inc. (NasdaqGS: EBAY) Inc. said Monday it would cut its staff by 10 percent, a move that would lay off about 1,000 full-time staff members.

The cutback would also affect "several hundred temporary workers and the reduction of open positions," eBay Inc. (NasdaqGS: EBAY) said in a statement.

The announcement was coupled with the news that eBay Inc. (NasdaqGS: EBAY) would purchase online billing service Bill Me Later for $820 million in cash and $125 million in outstanding options; eBay Inc. (NasdaqGS: EBAY) also said it would purchase dba.dk, Denmark's leading online classified ad business.

Dba.dk would cost the company $390 million, eBay Inc. (NasdaqGS: EBAY) said.

"We are making aggressive moves to strengthen our leadership positions in e-commerce and payments to competitively position our company for long-term growth," eBay Inc. (NasdaqGS: EBAY)'s Inc.'s President and Chief Executive Officer John Donahoe said in a statement.

Donahoe said cutting staff was "never an easy decision to make."

"The reductions will help improve our operations and strengthen our ability to continue investing in growth," Donahoe said.