SEATTLE, Jan. 30 — Internet retail giant Amazon.com Inc. on Tuesday posted a reduced quarterly loss, just beating Wall Street estimates, but said it would cut 15 percent of its workforce and take a restructuring charge of more than $150 million.
AMAZON, WHICH sells everything from books to electronics to hardware at its online store, said the 1,300 job cuts were needed to reach its previously stated goal of profitability for the fourth quarter of 2001.
“We have some clear objectives relating to profitability in the fourth quarter. These were some things that needed to be done to achieve profitability and for the long-term health of Amazon.com,” Chief Financial Officer Warren Jensen told analysts in a conference call after the announcement.
SEATTLE SUFFERS
Amazon said it would close a distribution center in McDonough, Ga., and its customer service center in Seattle. It also said it would operate its Seattle distribution center only seasonally.
Analysts had expected the move because of continued losses by the company, which is under pressure from investors to turn a profit, and because of a disappointing holiday sales season.
For the three months ended Dec. 31, its pro forma net loss was $90.4 million, or 25 cents a share, compared with $184.9 million, or 55 cents, a year earlier. Wall Street analysts tracked by First Call/Thomson Financial had expected Amazon to lose 26 cents a share.
Amazon shares closed at $18-15/16, down $1-3/16, or 5.9 percent, on Nasdaq before the announcement on Tuesday.
REVENUES BEAT FORECAST
Amazon said quarterly revenues of $972 million were up 44 percent from $676 million a year earlier. That was more than the company’s recent forecast of $960 million.
Earlier this month, Amazon said it had slashed its year-end inventory balance by 20 percent to less than $175 million. Analysts have said the 5-year-old company is relatively inexperienced at stocking the right mix of goods.
Analysts viewed the holiday quarter as a crucial time for Amazon to prove its growth first, profits later strategy could work. The company has expanded beyond its core books business into music, software, hardware and even lawn furniture.
AMAZON, WHICH sells everything from books to electronics to hardware at its online store, said the 1,300 job cuts were needed to reach its previously stated goal of profitability for the fourth quarter of 2001.
“We have some clear objectives relating to profitability in the fourth quarter. These were some things that needed to be done to achieve profitability and for the long-term health of Amazon.com,” Chief Financial Officer Warren Jensen told analysts in a conference call after the announcement.
SEATTLE SUFFERS
Amazon said it would close a distribution center in McDonough, Ga., and its customer service center in Seattle. It also said it would operate its Seattle distribution center only seasonally.
Analysts had expected the move because of continued losses by the company, which is under pressure from investors to turn a profit, and because of a disappointing holiday sales season.
For the three months ended Dec. 31, its pro forma net loss was $90.4 million, or 25 cents a share, compared with $184.9 million, or 55 cents, a year earlier. Wall Street analysts tracked by First Call/Thomson Financial had expected Amazon to lose 26 cents a share.
Amazon shares closed at $18-15/16, down $1-3/16, or 5.9 percent, on Nasdaq before the announcement on Tuesday.
REVENUES BEAT FORECAST
Amazon said quarterly revenues of $972 million were up 44 percent from $676 million a year earlier. That was more than the company’s recent forecast of $960 million.
Earlier this month, Amazon said it had slashed its year-end inventory balance by 20 percent to less than $175 million. Analysts have said the 5-year-old company is relatively inexperienced at stocking the right mix of goods.
Analysts viewed the holiday quarter as a crucial time for Amazon to prove its growth first, profits later strategy could work. The company has expanded beyond its core books business into music, software, hardware and even lawn furniture.