Stock Watch: Starmedia Falls on Q3 Charges

StarMedia Network Inc. (Nasdaq: STRM) fell 1 9/16 to 9 15/16 Thursday after the company said it will cut 15 percent of its staff and take a $2 to $4 million charge to third quarter earnings to cover the job cuts and other cost-reducing moves.

StarMedia, a New York-based Internet media company that targets Spanish and Portuguese speaking audiences, said the moves will enable it to achieve operating profitability in the fourth quarter of next year, a year earlier than expected.

The job cuts, which affect about 125 positions, will eliminate duplicate jobs that are a result of the 10 acquisitions the company has made over the past 12 months. The cuts will save $15 to $20 million a year, StarMedia said.

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