HotJobs Slips on Job Cuts, Charge

HotJobs.com (Nasdaq: HOTJ) fell 16 U.S. cents to $5.34 in morning trading Tuesday, after the Internet recruitingcompany said it has cut 15 percent of its workforce since the start of the year.

The New York-based company said it will take a $2.5 million to $3million charge to first-quarter earnings to cover the job cuts.

Excluding the effects of the charge, HotJobs said it “remains comfortable”with previous projections for results for the quarter ending in March, andthat it is on track to post a profit by the fourth quarter of this year.

In February, HotJobs predicted first-quarter revenue would be 3 to 4 percentabove the fourth quarter’s $31.5 million, with a loss before non-cashcompensation charges and amortization of goodwill of about 17 cents pershare. According to HotJobs, a sluggish economy was holding results back.

“In an ongoing effort to streamline our operations, we have made workforceadjustments to better optimize our resources,” said HotJobs president and chief executive officer Dimitri Boylan.

Boylan, who had been the recruiting firm’s chief operating officer, tookover as interim president and CEO March 1st, when the company’s founder, president and CEO Richard S. Johnson resigned.

Johnson remains chairman, focusing on newmarkets and strategic development for the company. HotJobs said at the time that it would look for a permanent CEO.

The company said it plans to report first-quarter results during the first week of May.

HotJobs said its online employment exchange is used by more than 9,100companies. The company also offers services such as job-applicant trackingsoftware and a business-to-business (B2B) exchange for corporate hiring managersand staffing firms.

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