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TheStreet.com to Lay Off 20% of Its Staff

April 05, 2001|Bloomberg News

TheStreet.com, a provider of business and financial information on the Internet, will fire about 40 workers, or 20% of its staff, and trim other expenses, Chief Executive Thomas Clarke said.

The measures, which include job cuts across all departments, will result in annual savings of $15 million, Clarke said. TheStreet.com will reduce travel, marketing and contract-services expenses and sublease part of its New York office.

The changes are part of a plan to achieve positive cash flow by the second half of this year. The New York-based company, co-founded by former hedge-fund manager James Cramer, said it has about $60 million in cash and no debt. It has yet to post a profit.

"I'm not sure I share the attitude that the market will come back" in the second half, Clarke said in an interview. "I want to make sure we're around then and that we're healthy."

The company's shares (TSCM) fell 19 cents to $2 on Wednesday on Nasdaq. They've dropped 75% in the last year.

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