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Egghead.com Laying Off 77 Staffers

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MENLO PARK, Calif. -- Egghead.com, an Internet retailer of technology products for small businesses, is laying off 77 employees, or about 12% of its work force. Egghead.com, which started as a chain of software stores in 1984, said Monday it would cut 40 jobs in its Menlo Park headquarters and 37 in Vancouver, Wash.

President and CEO Jeff Sheahan said the move was necessary to "streamline the business" and reduce costs. Egghead.com shares rose 6 cents, or more than 8 percent, to 81 cents Monday on the Nasdaq Stock Market. In after-hours trading, the stock fell back to where it began the day, at 75 cents.

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