EMusic Slashes Staff, Including Top Executives

EMusic Inc. laid off more than a third of its staff and cut three top executives, a move it said will save more than $16 million in cash expenses. EMusic, the financially struggling music download site based in Redwood City, Calif., said it eliminated 66 jobs across the board and consolidated its two New York offices into one. In addition, Chief Financial Officer Joseph Howell, General Counsel Peter Astiz and Executive Vice President James Chapman all left the company. Emily Rupp, EMusic’s corporate controller, has been named CFO. “We wanted to make sure that we had the dollars, resources and people who were right for a smaller, more focused company,” said Gene Hoffman, EMusic’s president and chief executive. EMusic is among a growing number of music dot-coms that have seen their share prices plunge under $1 for more than 30 consecutive trading days. If the stock does not rebound within 90 days, Nasdaq can delist it, though the firm can appeal that decision.