Salon.com (Nasdaq: SALN) cut 13 jobs as part of a cost-cutting plan.
On Wednesday, the online provider of news and commentary said it would slash its fiscal 2001 operating budget by 20 percent. That includes 13 layoffs, fewer freelance contributions, cutting marketing and other costs.
"This was a difficult and painful decision," said Michael O'Donnell, president and CEO. "But it was a necessary one for Salon.com to achieve its goal of profitability. It will in no way affect the quality of Salon.com's award-winning content or relationships with our customers."
The move comes two weeks after Salon.com reported fourth quarter results below analyst estimates.
Several Web companies in recent months have been forced to cut jobs, including drkoop.com (Nasdaq: KOOP), Beyond.com (Nasdaq: BYND), Neoforma.com (Nasdaq: NEOF). Media reports have suggested that many Internet content providers and retailers could face a cash crunch in coming months.
Salon.com has enough money to last into next year, O'Donnell said last week, during an interview with ZDII. Salon.com has access to more funds if needed, O'Donnell said, although the company is reluctant to give up ownership stakes.
Shares of Salon.com closed Wednesday's regular trading at 2 1/8, up 3/32 for the session.>