Amazon.com has posted a a fourth-quarter loss that slightly exceeded expectations and will lay off 1,300 employees, as it strives to become profitable by the end of the year.
The company posted a pro forma net loss of US$90.4 million excluding investment and other non-operating losses. A year ago, Amazon posted a pro forma loss of US$184.9 million.
Net loss for the period was US$545 million on revenues of US$972 million. That compares with a loss US$323 million on revenues of US$676 million in the same period in 1999.
In addition, the company said expects to be profitable, on a pro forma basis, by the the fourth quarter of 2001.
"While the strength of consumer spending remains uncertain, and there are no guarantees, we expect Amazon.com as a whole to reach operating profitability in the fourth quarter of this year," Amazon.com chief financial officer Warren Jenson said in a statement.
The company is laying off staff from its approximately 8,500 person work force. The cuts are primarily coming from Amazon's distribution and customer service centres in the US, both of which the company will close.
Workers at the service centre had been attempting to organize a labour union, but Jenson said the closure was unrelated to the union activity.
"We totally respect the rights of every employee in this company," Jenson said.
