Still In The Emergency Room
Drkoop.com, the troubled online health site, is still in critical condition. Its health has not improved since it received a $20 million injection of equity financing in August while laying off 42 workers, 22 of whom were full-time staffers.
The company, which has seen its stock value drop down to the 40-cents-per-share range, also has to plead its case before the Nasdaq in a bid to avoid delisting from that exchange.
Now the company says it will cut another 45 jobs as part of a restructuring move to trim the companys burn rate to less than $1 million per month from last years $8 million per month. Were sure that the VCs who dumped money into it are pleased to hear that.
Drkoop.com says it will shut down its Austin, Texas, headquarters and turn its offices in Santa Monica, Calif., into its new headquarters.
The recent restructuring also means the company will explore new business opportunities not limited to the Internet. This may include opportunities in which it will partner with brick-and-mortar businesses.
Heres some free advice for the troubled site: If venturing into new areas, avoid offering online financial guidance.