Video-compression provider On2 Technologies says it has slashed its staff by 40 percent, citing financial woes.
On2 said last week's layoffs were made because of a likely reduction in the amount of the financing the company could receive under its equity line of credit as a result of a weakness in the company's stock price. On2 said it had $1.2 million in first-quarter revenue. Its $700,000 monthly operating costs, excluding depreciation and amortization, will be reduced to $400,000 as a result of the layoffs.
On2 said most positions were cut in support, business development and marketing. The company has 30 remaining employees. --Gwendolyn Mariano, Special to ZDNet News