Egghead.com announces more layoffs

Struggling Internet retailer Egghead.com Inc. (http://www.egghead.com) said that it would cut 29 percent of its workforce Friday, totalling 186 employees. The cuts are immediate and will come across the board, including mid-level and senior managers, at the company's headquarters in Menlo Park, California, and in Vancouver, Washington, the company said.

The layoffs come one month after a previous round of layoffs at the company and an infusion of cash from IBM Corp. Egghead fired 77 employees, 12 percent of its staff, on March 6 after announcing poor financial results for the fourth quarter of 2000. The next day, IBM loaned the company US$20 million in an attempt to tide the company over until it reached profitability.

It has been a difficult year for Egghead.com overall. Prior to the first round of layoffs the company was the victim of a high profile hack in January. However, only a relatively small portion of the company's customers were affected by the intrusion, Egghead said.

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