eliminated about half of its workforce in an effort to reduce annual operating expenses.
The company eliminated 125 of 254 positions, in all areas of the company. The job cuts are effective immediately.
In addition to job cuts, buy.com also plans to decrease outsourced services, exit the golf business acquired from
and close the company's sports store. The company expects the actions to shave operating expenses by $70 million a year.
The restructuring plan should result in a pretax charge of $32 million to $37 million in the first quarter of 2001. The charge will alter buy.com's guidance for the quarter. The current estimate provided by
First Call/Thomson Financial
stands at a loss of 10 cents in the quarter.
buy.com has experienced
internal upheaval in recent weeks. On Feb. 13, Gregory Hawkins, the chairman and chief executive, and Mitch Hill, the chief financial officer, resigned.
trading, buy.com rose 3 cents, or 8.3%, to 41 cents.