Personal video recorder developer Tivo is stabbing the rewind button on its spending, trimming 25% of its workforce.
The company had 320 full time and 53 part time workers. Tivo's marketing spending and subsidies to manufacturers have been so heavy that the company has been spending $900-$1,100 to land each new customer that pays, at best, $10 a month to keep their PVRs updated with television guide data.
The company wants to trim costs by 35% while continuing to build its meager subscriber base. At its recent spending rate the company was on track to burn through the $124 million it had in the bank by fall. Now, the company contends its annualized losses will come to just $60 million. - John Higgins