Webvan Slashes Work Force:

Struggling online grocer Webvan Group Inc. continued a crash financial diet by shedding its Atlanta delivery system and laying off 885 employees--about 25% of its work force. The news came as the company reported a first-quarter loss of $86.1 million, or 18 cents a share, compared with a loss of $75.4 million, or 17 cents, a year ago. Sales more than doubled to $77.2 million from $37.5 million. Webvan’s shares fell 10 cents to close at 14 cents on Nasdaq. As part of an effort to boost its shares above $1 and avoid getting bumped off Nasdaq, Webvan announced that its board has approved a reverse 25-to-1 stock split. The reverse stock split would result in a 25-fold reduction in the number of outstanding shares of Webvan stock--a change that the company hopes will dramatically increase the trading price of its shares.