CompUSA to Reboot

CompUSA, the struggling Dallas-based computer retailer, has announced plans to cut 4 percent of its workforce (roughly 700 jobs). The axe is expected to fall later this month. The company reported that it will take a $4 million after-tax charge in the quarter ending June 30, 2001. The layoffs are expected to save CompUSA about $30 million.

CompUSA has had bottom-line problems from PC price wars, the competition of such direct sellers as Dell Computer and Gateway and the purchase – which proved an unprofitable one — of rival Computer City. The company also recently shut down its online subsidiary cozone.com, an e-tailer that suffered from sluggish sales.

The company, which was recently sold to Mexico-based retailer Grupo Sanborns, operates about 225 stores selling hardware (including its own brand of PCs), software and accessories in more than 40 states.