*Etoys Slashes Staff by 60 Percent

Share this article:
This is not a good week for eToys. A day after saying that it was shutting down its United Kingdom site, eToys late yesterday fired about 380 workers with another 320 served notice that their jobs will end on March 31.


Those fired include both eToys and Baby Center employees.


The company also announced plans to cease warehouse operations in Commerce, CA., and Greensboro, NC, during the next two months. It also said it would consolidate those operations within eToys' existing distribution centers in Ontario, CA., and Blairs, VA.


The action comes on the heels of a Dec. 15 announcement in which the company said that revenues for the holiday quarter would be significantly less than earlier projections. It blamed a harsh retail climate and the "disfavor of Internet retailing."


At that time, the company said that it had engaged Goldman, Sachs & Co. as its financial adviser to explore strategic alternatives for the company, which may include a merger, asset sale, investment in the company or another comparable transaction, or a financial restructuring.


On Wednesday, the company said it would close its United Kingdom Web site on Jan. 19 and follow by winding down its European business.
Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Digital Marketing

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Digital Marketing

IAB Tech Lab to Set Global Digital Marketing Standards

IAB Tech Lab to Set Global Digital Marketing ...

In looking to solve complex tech issues, the association opens up full membership to agencies and solutions providers.

Integration Meets Innovation in Planters' Digital Campaign

Integration Meets Innovation in Planters' Digital Campaign

The snacks brand found a healthy way to navigate today's world of digital marketing saturation.

USA Today Decides to Play Games for Real

USA Today Decides to Play Games for Real

It partners with game-maker Arkadium to add 60 new digital games to its site, offering advertisers more segmented breakdowns of players.