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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?

To: BC who wrote (30140)	4/21/1999 10:43:00 AM
From: Danny Song	Read Replies (1) \| Respond to of 90042

CPU starting to run, news. CompUSA to lay off catalog workers, offer Net shopping CompUSA will phase out its mail-order catalog operations in Marlborough, Mass., as it develops an Internet-only sales division under CompUSA Net.com, a newly formed subsidiary,the company said. Within three months, about 200 employees who support CompUSA's mail-order business in Marlborough will be laid off, reducing the number of workers there to about 150, said Suzanne Shelton, director of public relations for CompUSA. The affected employees will be offered severance packages, she said Friday. ''The organization will be flat with a minimum of support people. It will mirror the organizational structure of Internet companies,'' Shelton said. At the same time CompUSA will recruit people with Internet business experience. The new Web site and layoffs are among steps that CompUSA is taking to increase profitability after a 66 percent drop in profits last year. For fiscal 1998, net income was $31.5 million, or 33 cents a diluted share, compared with net income of $93.9 million, or 99 cents a diluted share, in fiscal 1997. The realignment of CompUSA Net.com is expected to decrease the fourth-quarter financial results by approximately $5 million to $8 million. The company has announced a 16 percent increase in sales over the comparable period for the third quarter, which ended March 28, but will release operating results for the quarter May 5. Last month, CompUSA Net.com relaunched its Web site, offering online retail shopping for desktop and notebook computers, software and accessories. The company's new management is developing its business plan, which will detail its target market and plans to reach it, Shelton said. (c) 1999, Fort Worth Star-Telegram Visit the Star-Telegram on the World Wide Web: www.star-telegram.com. Distributed by Knight Ridder/Tribune Information Services. AP-NY-04-20-99 1431EDT< -0- By Cassie M. Chew Knight Ridder Newspapers