Internet auction site eBay has announced a pair of major acquisitions today, in an effort to bolster its position in the marketplace. The company is buying the online payments business Bill Me Later for $820 million in cash and 125 million dollars in employee options, along with a Danish online classifieds site and classified car sales site for a total of around $390 million.

Bill Me Later will be combined with eBay’s PayPal unit and is expected to generate $150 million in revenue in 2009. The company also said it is looking to become a “nimbler and more efficient organization,” which unfortunately means that about 1,000 employees and several hundred temporary workers will be receiving pinks slips.