Salon.com (Nasdaq: SALN) cut 25 jobs, said it expects to lose more in the third quarter than at least one analyst expected and announced the resignation of its executive vice-president.
After market close Wednesday, the online media company announced cost cutting moves that include the elimination of 25 jobs, or about 20 percent of Salon.com's workforce. Salon.com said it will cut total operating costs by 40 percent to speed its path to profitability.
That won't come in the fiscal third quarter ending December. Salon.com now sees a per-share loss of 23 to 26 cents in the third quarter. The lone analyst surveyed by First Call was predicting a loss of 13 cents per share.
"The market is demanding profitability and we're committed to get there as quickly as possible in 2001,'' said Michael O'Donnell, president and CEO. "This was a difficult decision because it involves talented people who have worked very hard to make Salon a success.''
Salon.com co-founder Andrew Ross resigned as executive vice-president to spend time with his family and pursue writing, the company said.
This week's cuts aren't the first expense reduction efforts for Salon.com this year. In June, the company cut 13 jobs. Last month, O'Donnell said Salon.com could reach break-even with its current assets.
Shares of Salon.com rose 0.03125 to 1.0625 in Wednesday's regular trading ahead of the news.>