etoys cuts 60 per cent of staff
380 leave today
eToys today announced plans to cut 60 per cent of staff in a bid to stem losses.
The US toy e-tailor said it would get slash around 700 staff - 380 left today, with the rest due out by 31 March.
It no longer expects to be profitable in its fiscal year ending 31 March 2003, according to a statement. Nor does it expect to reduce its quarterly loss year-over-year starting in the quarter ended 31 December 2000.
It also expects to shut warehouse operations in the City of Commerce, California, and Greensboro, NC, in the next 30 to 60 days. Those businesses will be consolidated into its existing distribution centres in Ontario, California, and Blair's, Val.
Los Angeles-based eToys warned about the job cuts last month, when it said poor sales in its third quarter meant it would not meet revenue forecasts. At the time it said it would post losses of up to $85 million. Yesterday the company said it would shut its European operations in the first quarter of this year. ®