Barnes & Noble.com cuts to avoid e-tailspin

Barnes & Noble.com announced that it's reducing its work force and distribution facilities. It will close a processing center in New Jersey and the Fatbrain.com (a newer acquisition) book fulfillment operation in Kentucky. About 350 jobs (16 percent of its workforce) will be let go from New York operations and at Fatbrain.com operations in Santa Clara, Calif.

Fourth-quarter losses for the New York-based e-tailer more than tripled (to $138.1 million), compared to the year ago period. Reportedly, the downsizing will help the company realize $55 million this year. Barnes & Noble.com plans to be back in the black by the fourth quarter, 2002.

In related news, eToys'(Santa Monica, Calif.) will lay off its remaining 293 employees (working in Ontario, Calif., and Blairs, Va., distribution centers) by April 6. In late January, its shares fell to 12 cents.