Garden.com trims nearly 40% of staff

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Garden.com, the online seller of everything from plants to hoses, is cutting its staff by about 40% and is hiring investment bank Robertson Stephens to assist in ongoing fund-raising efforts. Garden.com also warned first-quarter revenue would fall short of expectations due to a restructuring. Garden.com said it expects revenue of $2.3 million to $2.5 million, well below analysts' estimates of $3.3 million to $3.7 million. Garden.com said it is laying off 93 employees to lower the company's operating expenses and cash burn rate.

"After reviewing the funding options available to us at this time, we found that the current cost of capital was unacceptable to continue to fund the growth and operating plan we have been executing on for the past year," Cliff Sharples, Garden.com's chief executive, said in a statement. "We made the tough decision to reduce our work force so that we could refocus our energies, leverage our critical skills and assets, and evolve our business model to more accurately reflect existing market conditions."

Copyright September 2000, Crain Communications Inc.

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