Kozmo.com Lays Off 60; Plans to Deliver Spring Catalog

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The New York-based Internet delivery company Kozmo.com on Friday let go of 60 workers or about 4 percent of its workforce.


It also said that it is moving forward with plans in April to drop 400,000 books in nine key areas - Boston, New York, Washington D.C., Atlanta, Chicago, Seattle, Portland, San Francisco and Los Angeles. The company plans to drop catalogs bi-monthly with a total of 4 million books for the year.


"The catalog is a natural extension for us," said Andrew Resnick, Kozmo's senior vice president of marketing. "We really wanted to focus on adding as many channels of distribution and access to a customer as we can. The service is so unique while we are certainly Web enabled our business certainly lends itself to a catalog."


The layoffs come a month after the same-day delivery company laid off 120 people and closed operations in Houston and San Diego. About 340 workers were let go last year.


Kozmo is using a combination of its own database and list rentals for the upcoming campaign. The majority of the catalogs will be sent to prospects, but Resnick was unsure what that percentage would be.


The company's target audience is between 25 and 49, well educated and a household income of more than $50,000.


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