Glenn, I wonder what happened to Billys Amzn leaps. I guess we'll never know.
>Published: January 30 2001 21:05GMT | Last Updated: January 31 2001 00:06GMT
Amazon.com plans to cut 1,300 staff, or 15 per cent of its workforce, the largest online retailer said on Tuesday night. The unexpectedly deep cuts came as it warned that sales in the coming year would be more than 10 per cent lower than expected.
The news was a further blow to one of the few online retailers of any size, but the company moved to reassure investors that it should not run out of cash. Jeff Bezos, chief executive, said the group had ended 2000 with $1.1bn of cash and would have approximately $900m by the end of 2001.
"Unless the company chooses to raise cash to further strengthen its balance sheet or for strategic flexibility it has no reason to do so," said Warren Jenson, chief financial officer.
Analysts focused on Amazon's forecast that sales growth would slow in 2001 from the 44 per cent reported in 2000 to 20-30 per cent. Analysts had expected sales to grow from $2.76bn in 2000 to $4bn, but the figure will now be $3.4b-$3.5bn, Mr Jenson said.
Mr Bezos said Amazon had been affected by the general slowdown in consumer confidence in the US.
Amazon reported an increase in fourth quarter net losses from $323m to $545m, or from 96 cents per share to $1.53 per share. Excluding such charges, Amazon said the pro forma net loss from operations narrowed to $60m from $175m. In line with Amazon's reduced guidance, revenues were $972m, up from $676m a year before.
Pro forma operating losses for the full year are likely to be in the range of 4-7 per cent of sales, Amazon said - or $136m-$245m.
The quarterly results revealed a sharply slower rate of growth for Amazon's US books, music and video segment - its longest-established business. Its sales grew by just 11 per cent to $512m, while international sales rose by 104 per cent to $145m.
In after hours trading on Instinet, Amazon's shares were down $1 from the close, at $17.94. |
