Buy.com to cut 40 percent of its staff

The online retailer will cut its 230-person staff by about 100 people, sources say, marking the company's second round of layoffs in less than a month.

Greg Sandoval Former Staff writer
Greg Sandoval covers media and digital entertainment for CNET News. Based in New York, Sandoval is a former reporter for The Washington Post and the Los Angeles Times. E-mail Greg, or follow him on Twitter at @sandoCNET.
Greg Sandoval
2 min read
Online retailer Buy.com will lay off more than 40 percent of its staff Wednesday, sources close to the company said, marking the company's second round of cuts in less than a month.

Buy.com plans to cut 100 positions from it 230-person staff, according to sources. Earlier this month, the company announced it would cut 25 jobs while slashing its sales targets for 2001.

Executives at Buy.com did not return phone calls seeking comment.

One of the few remaining Web-only retailers, Buy.com has been rattled by tough economic times and executive departures. The company's chief executive and chief financial officer resigned two weeks ago following the company's announcement that it missed fourth-quarter estimates.

Aliso Viejo, Calif.-based Buy.com reported a fourth-quarter loss of $27.4 million, or 20 cents per share--compared with analysts' expectations of a loss of 19 cents. The company also cut 2001 sales projections from $1.05 billion to $600 million.

Buy.com's share price has slid since its initial public offering a year ago. Peaking at $26.40, shares have since declined to less than a dollar.

A number of online merchants have gone out of business and those remaining, such as Net giant Amazon.com, are under serious pressure to produce profits.

Amazon has fought off analyst claims that it could run out of cash by the end of the year. Last week, The Washington Post reported that Amazon's suppliers were growing fearful that the company faced insolvency, a condition that--if it worsens--could lead suppliers to eventually stop shipping goods to the Seattle-based e-tailer.

The latest dot-com casualty came Monday as eToys, one of the Web's premier toy stores, said that it would file for Chapter 11 bankruptcy protection and shutter its Web site by the end of next week.