- Embattled online toy retailer eToys is to lay off 700 of its 1000 workers as part of an effort to cut costs in the wake of slower than expected holiday sales.
Los Angeles-based eToys says 380 employees are being laid off immediately while the other 320 people will work through to the end of March. The cutbacks come less than a month after the online retailer warned that it will need a "substantial cash infusion" in order to continue operating beyond March.
As part of the announcement, eToys also said it will close warehouse facilities in California and North Carolina within the next two months and consolidate those operations into two other distribution centres. The online retailer also formally disclosed plans to close its UK-based website later this month and fully wind down its European operations shortly thereafter.
eToys already had posted a notice on the UK site detailing the planned January 19 shutdown. As part of the closing, eToys said it's cutting prices by 50% on all products sold through that website and only accepting returns of items bought after December 29 if they're defective or were shipped in error.