TECHNOLOGY : MORE ON TECH : CompUSA to Lay Off Half Its Sales Force

CompUSA Inc. announced the immediate layoff of 1,800 employees, half of its sales force, as it struggles to return to profitability amid declining prices for personal computers. The nation’s largest PC retailer also reported another loss in its fiscal fourth quarter, but the operating loss of $14.9 million, or 16 cents a share, was better than the 24 cents a share analysts anticipated. In the year-earlier quarter, CompUSA had an operating loss of 19 cents a share. Sales rose 23% to $1.46 billion, but sales at stores open a year or more were up just 1%.

The earnings report, released after the close of trading, had been delayed nearly two weeks while the Dallas-based company finished details of several restructuring efforts, including the sales layoffs. The job cuts will be spread throughout the company’s stores and will bring the retailer’s total cuts since June to 2,400. The layoffs are part of an effort to move sales agents out of local stores to regional locations. The company said putting the agents in stores led to duplication in markets where the chain has more than one store.

CompUSA had an operating loss of $54.2 million, or 50 cents a share, contrasted with operating income of $57.2 million, or 33 cents, in its fiscal 1998. Shares in CompUSA fell 50 cents, or 7%, to close at $6.69 on the New York Stock Exchange.