New York City-based quick-delivery Internet service Kozmo.com has laid off 275 employees because it upgraded a computer software system that helps route delivery orders more efficiently, according to industry reports. The company made the staff cuts in New York and Los Angeles, its two largest markets. Kozmo.com reduced the number of distribution centers in Los Angeles from five to three.
In New York there still will be four distribution centers but they will be moved to more efficient facilities, reports say. The move follows an announcement in June in which Kozmo.com laid off 24 employees at its New York City headquarters, although at the time the company said there would be no further staff reductions. The company plans to expand to San Diego next week. Kozmo.com currently offers its Internet delivery service in 11 cities.