RealTime IT News

More Cuts at drkoop.com

drkoop.com Tuesday revealed plans to consolidate operations at its Santa Monica, Calif., headquarters and close the doors of its Austin, Texas-based office, eliminating 45 positions.

"This move allows us to materially reduce our corporate overhead and put our people near where our clients and strategic partners are located," said Ed Cespedes, president of drkoop.com. "Much of the infrastructure developed in Austin was concentrated around prior management's objectives for internal product development. However, drkoop.com will now be focusing on creating alliances with highly qualified and trusted partners."

The company anticipates that partners will provide the site with technology, comprehensive health content, hosting health-management tools, management solutions and new distribution channels.

The consolidation of offices, combined with previous operational solidification efforts, is expected to reduce cash expenses to less than $1 million, a significant drop from a high of $8 million per month that was reported last March.

"The consolidation is an important step in the progress of drkoop.com toward profitability," said Scott Hylen, a member of the board of directors.