<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META content="text/html; charset=windows-1252" http-equiv=Content-Type> <META content="MSHTML 5.00.2314.1000" name=GENERATOR> <STYLE></STYLE> </HEAD> <BODY bgColor=#ffffff> <DIV>TheStreet.com Slashes Work Force By Seth Sutel AP Business Writer Thursday, Nov. 16, 2000; 1:43 p.m. EST NEW YORK –– Struggling financial news site TheStreet.com announced a sweeping cost cutting program Thursday that includes slashing 20 percent of its work force, shutting down its U.K. operation and dismantling a joint newsroom with The New York Times. Thomas Clarke, chief executive of TheStreet.com, told investors on a conference call that the measures would provide a "huge step" toward the company's goal of becoming profitable by the second half of next year. "In today's environment, companies have two clear choices: chart a direct path to profitability or shut down," Clarke said in a statement. "We're in this for the long haul. And to go the distance, we must operate at peak efficiency." About half of the expected annual cost savings of $18 million would come from the closure of the TheStreet.com's U.K. operation, which was due to run out of money by the end of the year. TheStreet.com owns 63 percent of the year-old business and plans to buy out the other investors for $3 million in cash and 1.25 million shares in stock. Like many other Internet companies, TheStreet.com has stumbled in trying to find a workable model for making money from advertising and charging for content. Just two days ago, Playboy Enterprises Inc. said it would postpone an initial public offering of its online operations, following similar moved from MTV and The New York Times Co. Shares of TheStreet.com were down 46.9 cents, or 13 percent, at $3.03 in afternoon trading on the New York Stock Exchange, well off their 52-week high of $22. The shares had traded as high as $71.25 in May 1999 when the company went public. The cuts announced Thursday include the elimination of 40 jobs across the company, which will save about $3 million a year, Clarke said. He said the cuts would not have a major impact on the site's editorial content. Clarke said TheStreet.com also had reached a "mutual agreement" with The New York Times to shut down their 18-month old joint newsroom, which employed seven journalists and provided news stories to both TheStreet.com and the Times' Web site. "We learned a great deal, but times have changed since it was established," Clarke said on the conference call. "Its benefits no longer outweigh its costs." The New York Times Co. remains a minority investor in TheStreet.com with a 5.7 percent interest. TheStreet.com has experimented with different subscription models but so far none have proved profitable. TheStreet.com lost $9.6 million on revenues of $6.2 million for the three months ended in September, compared to a loss of $7.8 million on revenues of $3.9 million in the same period a year ago. However, TheStreet.com still has a stockpile of $90 million in cash, and Clarke said he would continue to consider acquiring other companies as a way to expand. TheStreet.com was co-founded by Martin Peretz, publisher of The New Republic magazine, and Jim Cramer, the flamboyant hedge fund manager whose brash style has landed him in hot water with several media outlets. ––– On the Net: http://www.TheStreet.com <CENTER> © Copyright 2000 The Associated Press </CENTER></DIV></BODY></HTML>