Z.com Cuts Half of Its Staff
When it rains it pours. Los Angeles-based web content company Z.com (www.z.com), announced yesterday that it has acquired an undisclosed amount of funding through licensing and investment deals, which will alleviate its current financial woes. Nonetheless, Z.com has laid off about 50% of its entire staff. The cuts were across the board.
"We needed to get a bit leaner," stated Karen Drasler, spokeswoman for Z.com.
According to Drasler, the company currently has enough funds to remain operational until the spring of 2001, but is still courting the financial market for funding options to extend that date. Drasler also stated that the company will remain committed to producing original content, but that no new content will be produced without first acquiring a sponsor. Z.com will zealously look to pursue the licensing of its content- both online and offline. In its largest licensing deal to date, Z.com announced in July that its content would be featured on Excite@Home's broadband portal.
Z.com was founded with funding from idealab!, Basic Entertainment, 3 Arts Entertainment, film producer Jerry Bruckheimer and Maverick Records Partner and Co-CEO, Guy Oseary. The site has pursued a rather star-studded content offering, with features centered on Ellen DeGeneres, Alanis Morissette and the Red Hot Chili Peppers. The site also produces original animation features and "game" shows targeted to the college-age audience.