EBay (EBAY)

Restructuring

In 2009, we began the consolidation of certain customer service facilities in North America and Europe to streamline our operations and deliver better and more efficient customer support to our users, which will potentially impact approximately 1,100 employees. In connection with this consolidation, we estimate we will incur aggregate costs of $45.0 million to $55.0 million, primarily employee severance and benefits. During 2009, we incurred restructuring charges of $26.0 million in connection with this consolidation. We expect to complete these activities by mid-2010. See “Note 11 — Restructuring” to the consolidated financial statements included in this report.

In 2008, we implemented a strategic reduction of our existing global workforce by approximately 800 employees worldwide to simplify and streamline our organization and strengthen the overall competitiveness of our existing business. Since inception of the plan, we have incurred approximately $61.3 million in restructuring related charges, primarily employee severance and benefits. The restructuring activities in connection with this plan are substantially complete.

Note 9 — Restructuring

In October 2008, we implemented a strategic reduction of our existing global workforce by approximately 800 employees worldwide to simplify and streamline our organization and strengthen the overall competitiveness of our existing businesses. As a result of this initiative, we estimate that we will incur aggregate costs of approximately $60.0 million to $65.0 million. During the three months ended March 31, 2009, total restructuring charges were $6.6 million.

A summary of the restructuring and other costs by segment recognized during the three months ended March 31, 2009 are as follows (in thousands):

The following table summarizes the restructuring activity during the three months ended March 31, 2009 (in thousands):

Adjustments reflect the impact of foreign currency translation.

Restructuring

During the first quarter of 2009, total restructuring charges amounted to $6.6 million. The restructuring charges incurred during the period primarily related to employee severance and benefits. Once completed, the restructuring activities are expected to result in an annual cost savings of approximately $150.0 million. See “Note 9 — Restructuring” to the condensed consolidated financial statements included in this report.