Musicmaker.com Cuts 30% of Staff
Musicmaker.com (http://www.musicmaker.com), a custom CD compilation and music company, said it was reorganizing and cutting 30% of its staff.
The company says that the reorganization will slow its cash burn rate.
"This was not an easy decision. We value our employees and thecontributions they have made," said Raju Puthukarai, Musicmaker.com's President, Chairman and CEO. "However, we believe that it is in the best interests of our shareholders that we engage in this restructuring."
"This reorganization plan will reduce our cash burn to approximately $10-$12 million per year, enabling Musicmaker.com to execute its business model more effectively," said Puthukarai.
Musicmaker.com's stock price has been on a downward spiral for a long time and is now trading under a dollar. The staff cuts were announced after the closing bell on Thursday, so the stock was unchanged, finishing the day at 9/16.
On Tuesday, Musicmaker.com's President of Global Marketing, Larry Lieberman announced he was resigning. The bad news started two weeks ago, when the company announced a one-for-ten reverse stock split.