Audible Cuts Jobs

Audio content provider Audible (www.audible.com) announced on Monday that it was streamlining its operations to "significantly reduce its cash needs." According to a statement, 35 employees (or approximately 40 percent of the workforce) were let go.

The company said it plans to achieve positive cash flow by the end of 2002 without additional capital. It said its soon-to-be-released third quarter results will exceed Wall Street expectations.

Additionally, CEO Thomas Baxter announced he was resigning from his position. Founder and Chairman Donald Katz will reassume the CEO title, which he previously held twice in the past.

"One of the main reasons we can significantly reduce our operating costs while maintaining our high level of service and leadership of the new industry of digital media distribution, is the level of efficiency, intelligence, and creativity built into our systems by many of the people now leaving us," said Katz. "It is difficult to express my appreciation for the hard work, loyalty, and friendship of the 35 individuals who are leaving Audible."

Baxter said he will remain on the company's board and will work as a consultant. "I couldn't be more proud or feel more secure about the prospects for Audible and its current team," said Baxter. "This company is ready to soar, and I plan to be there to help and serve as an active member of the board."

Audible says it has over 30,000 hours of audio programs and 165 content partners, such as audiobook publishers, broadcasters, magazine and newspaper publishers and business information providers.