Technology
Sun, 04 Feb 2001, 12:11pm GMT
Amazon.com's U.K. Unit to Cut Costs, May Cut Jobs, Paper Says
By James Mosher
London, Feb. 4 (Bloomberg) - The British unit of Amazon.com Inc., an American online retailer, will cut costs in a restructuring that may result in some of the subsidiary's 800 jobs being cut, the newspaper Sunday Business said, citing company officials and analysts.
Although Amazon.co.uk is Britain's second-most-visited retail Web site and it's met its sales targets, the subsidiary is expected to bear the brunt of cost-cutting by its U.S. parent, the newspaper said. Seattle-based Amazon.com said last week it will fire 1,300 people, or 15 percent of its workforce, in an effort to reach profitability by trimming costs.
Analysts predict more cutbacks at Amazon.com, and several say the international business will be hit harder than it has been so far, Sunday Business reported. The number of employees at the Thames Valley, England-based unit has been reduced and is likely to fall further, the paper said, without citing figures.
Steve Frazier, the company's U.K. managing director, said Saturday the ``whole group'' is working on plans to develop its business to meet profit targets, the paper said. Amazon.com last week said its fourth-quarter loss widened to $545.1 million.
Amazon.com shares fell 88 cents to $14.38 Friday. They've fallen 82 percent in the past year (12 months).
(Sunday Business 2/4 p.3) |
