January 30, 2001, 5:16 PM

Kozmo delivers pink slips

Don Davis

Editor in Chief

Kozmo.com has closed its online delivery service in San Diego and Houston, laying off 120 employees, 5% of its overall staff. A spokesperson for Kozmo says the markets were underperforming. Kozmo still operates in nine other markets including, Chicago, New York and San Francisco. This is Kozmo's second layoff in six months. In July it laid off 300 employees citing improvements to its system through automation. In December Kozmo altered its free delivery policy by instituting a $1.99 charge for all orders under $30. At that time, the company said the charge was to offset the added cost of its expanding product offering and service area.

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