TheStreet.com (TSCM) , a leading online financial media company and the publisher of this Web site, announced today that it is eliminating 21 positions as part of a cost-cutting initiative that is expected to bring $2.4 million in annualized savings.
The cuts, amounting to 6% of the total workforce, will be spread across various departments and locations, the company said in a press release. The company previously trimmed 11% of its staff in 2008. TheStreet.com will employ 290 after the latest job reductions.
TheStreet.com plans to take a pre-tax charge of approximately $500,000 in the first quarter of 2009, primarily for cash severance payments and related employee benefits. The company said it also is evaluating additional non-labor cost savings measures.
"As we previewed on our fourth-quarter earnings call, we are reducing costs across the company to maintain our goal of a free cash flow neutral position for 2009 and to protect our strong balance sheet," said Eric Ashman, chief financial officer. "This action, while difficult, allows us to continue to invest in new initiatives while remaining well positioned for future growth opportunities."
The cost-cutting announcement comes six days after TheStreet.com announced the departure of former CEO Thomas J. Clarke Jr.
Daryl Otte, a member of TheStreet.com's board of directors since 2001, is serving as interim CEO until a permanent replacement is named.
TheStreet.com shares closed at $2.08, up 1.5%, prior to the announcement.
This article was written by a staff member of TheStreet.com.