Amazon lays off 1,300 following latest loss

As Amazon.com raked up another $90 million in losses during the fourth

quarter, the giant online retailer finally started to show some cracks in the

massive walls the company has built to shield itself from the realities of the

marketplace. Amazon.com said it was laying of 1,300 people and closing down one

of its distribution centers in Georgia.

The quarterly loss was substantially smaller than the $198 million the

company lost in the last three months of 1999. Sales continued to rise and grew

44 per cent to $972 million. In another sign that realities are starting to gnaw

their way through to upper management, Amazon.com chief financial officer Warren

Jensen said his company will try to turn profitable this year. ''We have some

clear objectives relating to profitability in the fourth quarter. These lay-offs

were some of the things that needed to be done to achieve profitability and for

the long-term health of Amazon.com."

Industry analysts said they expect Amazon.com to make additional moves in the

coming months to achieve profitability late this year. Those could include

dropping one or more product lines that are not living up to earlier

expectations. Last year, the company added a broad range of goods, including

lawn chairs.