THE LAYOFFS: EBay Inc. is eliminating 1,600 jobs, about 10 percent of its work force. The online auction site operator will cut 1,000 full-time employees and let several hundred temporary and part-time workers go. It will also leave some open positions unfilled.

THE EXPLANATION: EBay CEO John Donahoe said the cuts will make the company "more responsive and nimble" and let it reinvest in growth areas like its online payments service, PayPal.

THE FINANCIAL IMPACT: Because of the moves, eBay expects to log restructuring charges of $70 million to $80 million, mostly in the fourth quarter. The company expects the cuts will save it about $150 million a year.