EToys slashes staff 70 percent

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As part of its continuing effort to restructure operations and reduce costs, online toy retailer eToys is laying off about 70%, or 700 of its 1,000 employees and closing two warehouses. The company, which is including staff at its subsidiary in the layoffs, says its recent poor holiday performance is severely limiting its funding options; on Dec.4, the company reaffirmed that it no longer believes it will be able to achieve profitability by the fiscal year ending March 31, 2003. The company has hired Goldman Sachs Group to explore funding alternatives, including a possible sale or merger. Earlier this week, eToys said it was closing its United Kingdom site Jan. 19. EToys stock was trading Jan. 5 close to 20 cents.

Copyright January 2001, Crain Communications Inc.

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