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 recruiting company 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 $3 million 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, and that 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 percent above the fourth quarter's $31.5 million, with a loss before non-cash compensation charges and amortization of goodwill of about 17 cents per share. According to HotJobs, a sluggish economy was holding results back.

"In an ongoing effort to streamline our operations, we have made workforce adjustments 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, took over as interim president and CEO March 1st, when the company's founder, president and CEO Richard S. Johnson resigned.

Johnson remains chairman, focusing on new markets 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 9,100 companies. The company also offers services such as job-applicant tracking software and a business-to-business (B2B) exchange for corporate hiring managers and staffing firms.