Zappos.com Inc feeling the stress from the economic problems in the USA.
The online shoes, clothing, bags and accessories retailer, No. 27 in the Internet Retailer Top 500 Guide, is laying off about 80 of it employees to cut costs.
Zappos is thinking of also closeing outlet storesin Nevada and Kentucky all to save more money, CEO Tony Hsieh wrote in a note on the company’s blog last week. “We made the hard choice of laying off about 8% of our employees,” says Hsieh. “The layoffs will affect almost every single department at Zappos.com.”
It is not their choice, the largest of their investors is telling them to trim the fat.
The employees to be laid off will be paid through the end of the year. Workers who have been with the company for three or more years will receive an additional payout, says Zappos.
In addition to firing employees, Zappos is also cutting back its sales forecast for 2008. Zappos now hopes that sales will grow by about 17% to around $1 billion from $850 million in 2007. That is still some serouis growth if you ask me. The turn in the market is effecting everyone. We will have to keep our heads up and push forward to make it through.
