Drkoop.com Continues Cost Cutting

Share this article:
Drkoop.com, a health information provider, is closing its Austin, TX, offices -- resulting in the loss of 45 jobs -- and is consolidating its corporate headquarters in Santa Monica, CA, in an effort to cut costs and create new alliances, the company said yesterday.


The moves are expected to reduce the total cash expenses to less than $1 million per month. Cash expenses reached a high of $8 million a month last March.


The company, which has 2 million registered users, also said certain sales and business development employees would be located in the Philadelphia area.


"This new alignment and relocation will allow us to leverage opportunities that are not limited to the Internet,'' said Richard Rosenblatt, CEO of drkoop.com. "These will include a bricks-and-clicks portfolio of partners and offerings with multiple revenue sources, including license fees, subscription fees, revenue sharing, sponsorships and advertising."


Co-founded by former U.S. Surgeon General C. Everett Koop, the company went public on June 8, 1999.


In early December, the Nasdaq notified drkoop.com that its stock had been trading below $1 for 30 consecutive days. The stock exchange required drkoop.com to comply with its listing rules or face removal.


Drkoop.com, which originally started with 185 employees, is now down to about 35. It cut 35 percent of its work force in May and in August reduced its staff from 120 to about 80.
Share this article:

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Digital Marketing

News Byte: CX Scores to Take Their Place Beside Price Listings

News Byte: CX Scores to Take Their Place ...

E-commerce aggregator PriceGrabber will begin offsetting price info with service expectations.

Data Byte: Interactive Ad Revenues Exceeding TV for the First Time

Data Byte: Interactive Ad Revenues Exceeding TV for ...

At nearly $43 billion, interactive advertising revenues exceeded broadcast for the first time in 2013.

Marketers: Data Rich and Knowledge Poor

Marketers: Data Rich and Knowledge Poor

While advertisers have become incredibly data-savvy, the most difficult challenge remains causally linking that data to outcomes that really matter.