Date: Thu Jun 22 2000 - 11:28:02 PDT
Wow! 2 days after getting more funding, laying off 41% of staff! CMGi's
share price is down as of the release of this article.
Furniture.com lays off 80 employees
By Greg Sandoval
Staff Writer, CNET News.com
June 22, 2000, 10:45 a.m. PT
Two days after receiving $27 million in private funding, Furniture.com
said today that it will lay off 80 of its 195
employees, slashing its work force by 41 percent, sources told CNET
Analyst Jeff Quinn, with research group Gomez Advisors, said Furniture.com
notified him of the layoffs today, saying the cutbacks
were part of the company's plan to reach profitability. An employee at
Furniture.com who was not laid off said the company
announced the layoffs to the remaining staff this afternoon.
This is the second round of layoffs for Furniture.com in the past two
months. In April, the company laid off
29 employees, or about 12 percent of its work force.
On Monday, the Framingham, Mass.-based company announced it had withdrawn
plans for an initial
public offering. The company filed for an IPO in January and said at the
time that it hoped to raise $50
CMGI, which already owned 17 percent of Furniture.com, led the group of
investors in Furniture.com.
In recent months, Internet companies have been running low on cash,
forcing some to trim their staffs or
even shut down. This month alone, EMusic, Salon.com and PlanetRx.com have
laid off workers.
In the home furnishings sector, Furniture.com rival Living.com last month
laid off 50 employees, or about
13 percent of its work force.
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