*Drkoop.com Cuts Staff Again Amid Management Reshuffle

Share this content:
Drkoop.com, the healthcare Web site that former Surgeon General C. Everett Koop helped create, cut about one-third of its 120-employee staff this week, the second layoff at the company in four months.


The move is part of an effort to bring cash expenses down to $6.5 million for the third quarter, the company said in a statement yesterday. Drkoop.com's expenses in the second quarter were $12.8 million, down from $18.6 million in the first quarter.


With the cuts, which were announced to employees Tuesday and were effective immediately, the company's staff is down to 79 employees, said Stephanie Elsea, spokeswoman for drkoop.com, Austin, TX.


The layoffs come in the middle of a full-bore management restructuring at drkoop.com. Last week, the company announced the appointment of Ed Cespedes as president, Richard Rosenblatt as CEO and Stephen Plutsky as chief financial officer.


In addition, the company said it expected to add five new members to its board of directors, of which Koop remains chairman.


Drkoop.com cut staff across the board according to the direction the new management team wants the company to go in, Elsea said. But she referred questions about impending changes to business strategy to Cespedes and Rosenblatt, neither of whom returned phone calls seeking comment.


"They've been here 10 days. They're still looking at that," Elsea said. "They're interested in running this like a business and maximizing shareholder value."


The new managers came to drkoop.com at a time when it is trying to recover from financial trouble. The company slashed 35 percent of its workforce in May and at the end of the second quarter, on June 30, said it had only $2 million in cash.


But earlier this week, drkoop.com said it had completed $27.5 million in new financing and planned to streamline its services.
close

Next Article in Marketing Strategy

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above