Bulletin: Amazon announces layoffs

Amazon.com Inc. announced today that it will slash 15% of its workforce, or 1,300 jobs, and close a distribution center in Georgia and customer service center in Seattle. In addition, it said its distribution center in Seattle will only be open during peak seasonal demand.

Amazon officials said the cutbacks are due largely to a general slowdown in the economy.

Amazon also reported a pro-forma net loss of $90.4 million, or 25 cents per share, slightly beating Wall Street projections. Analysts polled by First Call/Thomson Financial had predicted Amazon would lose an average of 26 cents per share.

Amazon, however, did say it expects to reach profitability by the end of its 2001 fourth quarter. This marks the first time the company has predicted when it might move into the black.

Sales for the quarter ended Dec. 31, 2000, were $972 million, an increase of 44% over the same period in 1999.

More details to come.

Copyright © 2001 IDG Communications, Inc.

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