LONDON (Brand Republic) 鈥 US internet retailer Priceline.com is axing 16% of its staff in a bid to streamline its operations and cut costs.
The news comes as the internet company -- which acts as an internet marketplace for cut-price products such as air tickets, car hire and telephone calls and is soon to launch in the UK -- loses its chief financial officer after just eight months.
Heidi Miller was lured to Priceline from the world鈥檚 largest financial institution, Citigroup, earlier this year, and her hiring was seen as a symbol of credibility for internet retailers.
Priceline said the job cuts and management shake-up also see executive vice-president Jeff Boyd become chief operating officer. Senior financial officer Bob Mylod takes over from Miller who has joined the board at Bank One, based in Chicago.
Announcing losses for its third quarter, Priceline also issued a warning about its fourth-quarter figures. Sales for the third quarter were up to $341m against $152m for the same period last year. The company recorded a loss of $4m, although this was lower than the $14m recorded for the same period last year.
President Dan Schulman said, 鈥淭he effect of restructuring will adversely impact the fourth quarter, but we believe they are necessary and appropriate to position the company for long term improvement.鈥
Staff at Priceline keep will take advantage of a new cash compensation programme designed to retain and motivate employees.
www.priceline.com