The internet retailing giant Amazon.com has axed 150 of its staff.

It is the first time the pioneering company has laid off workers since it went online in 1995.

The cuts amount to 2% of its total workforce of 7,500.

"We do ongoing organisational reviews to just ensure that we always have the right skills and the right number of people in line with the mission of the company," said Amazon.com spokesman Bill Curry.

News of the job cuts helped send the company's shares down $5.25 to $61.68¾ on the Nasdaq Stock Market. The shares are now down 42% from their mid-December peak of more than $106.

Online retailing nerves

Analysts said the stock decline was also due to overall nervousness about online retailing.

Many other Internet retailers have announced job cuts and restructuring after the holiday season, causing some concerns on Wall Street over whether the entire electronic commerce sector is due for a shakeout.

Earlier this week, the online fashion and sportswear retailer, Boo.com, axed 30 full-time and seasonal staff.

The company was launched in November after being dogged by technological delays. Globally, Boo employs about 400 staff and is reported to be backed by £125m of funding from the likes of Bernard Arnault of LMVH, the Benetton family and Goldman Sachs.

Last week, online software retailer Beyond.com announced a major restructuring that could mean layoffs of up to 20% of the company's 375-person work force.

In December, Value America, a general online retailer, slashed about 300 jobs in December because of competition and lacklustre sales.

Poor forecasts for Amazon

Amazon started as an online bookseller but it has added a wide range of goods and services.

It is the seventh most-visited site on the internet, according to the ratings company Media Metrix.

Founder Jeff Bezos was named Time magazine's person of the year for 1999.

But the company has lost money since it went online.

Investors have grown increasingly impatient with Amazon, which has never reported a profit and has repeatedly pushed back forecasts for when it might do so.