GLBT company cuts staff, gets new funding

SUMMARY: The largest GLBT media company in the world is reducing original content and staff before announcing new funding that will improve its cash flow.

The largest GLBT media company in the world is reducing original content and staff before announcing new funding that will improve its cash flow.

PlanetOut Partners, Inc., parent company of Web portals Gay.com and PlanetOut.com, revealed staff reorganization plans last week that included layoffs for 12 employees and revision of duties for others.

"We reorganized to focus on the things we do best -- aggregating content, premium services and e-commerce," said Bryce Eberhart, spokesman for the company, born when PlanetOut Corp. and Online Partners.com, Inc., the original parent company of Gay.com, merged early in 2001.

Eberhart said the layoffs are small compared to what other dot-coms are experiencing right now. "The real story is the $12.4 million in funding we'll be announcing this week," he said. "I know of no other online company getting funding right now. It shows confidence in our business model. The largest gay media company is doing better than other online media companies."

Visitors to the sites will probably not see a great deal of difference, Eberhart said, although much of the original content on the sites will be eliminated, replaced with news, features and columns originating elsewhere on the Internet. "The online newsmagazine format isn't working for anyone," Eberhart said. Aggregation -- the collection and repackaging of content from other sites -- is the goal for the company now, he said. "We'll be more of a Yahoo! than a Salon," Eberhart added.

"We looked at the business model -- what was working in our need to be cash-flow positive by the fourth quarter," said Eberhart. "There is a learning curve for the online audience. Until they recognize the need to pay for things they find valuable, we have to focus on the areas where we've seen exponential growth: premium personals, e-commerce and travel."

The timing of the departures of Gay.com columnist and editor-at-large Michelangelo Signorile and PlanetOut Partners Vice President for Site Development and Senior Editorial Director Robin Stevens last week was coincidental, Eberhart said, not technically a part of the layoffs and reorganization.

"For now, we're focusing on what we do best -- bringing the gay community together for chat, personals and shopping," Eberhart said. He said he could not comment on the likelihood that original content would return once the profitability goal is met. "We're leaving all doors open. People in this organization have been passionate about the original quality news coverage, and they have not lost that passion."