Jobs are to go at American internet retailer, BlueLight.com which has announced it is improving efficiency and profitability by tapping into the resources of its majority owner, Kmart.

The company, which had a total of 194 employees and for a while had been aggressively hiring people who were laid off from other dot-coms, declined to say how many jobs it would cut.

Jobs will go in BlueLight's merchandising and marketing departments as a result of the move.The exception would be in areas, like consumer electronics, that dominate the BlueLight business more than they do at Kmart.

BlueLight.com was formed in 1999 by Kmart Corporation and SOFTBANK Venture Capital with investment by Martha Stewart Living Omnimedia Inc.

The company, which had originally planned to become profitable by late 2000 or early 2001, is no longer disclosing its profitability targets.