Associated Press
NORWALK, Conn. — Priceline.com, the name-your-own-price company for travel and other services, said Thursday that it is cutting 16 percent of its work force and its chief financial officer is leaving after just eight months on the job.
Priceline said it was laying off 87 people from its 535-member work force. It also said CFO Heidi Miller, who left Citigroup to join the company, is leaving to "pursue opportunities and apply her talents in a more established business environment."
Bob Mylod, the senior vice president of finance, will replace her.
The announcements came as the company reported a third-quarter earnings loss of one cent per share. Priceline had warned of the loss, blaming tough competition from airlines.
Priceline, which began offering name-your-own-price airline tickets two years ago, has expanded into other areas, including rental cars, home mortgages, telecommunications services, gas and groceries. Buyers post the price they are willing to pay and are notified electronically if there are interested sellers.
The company’s business model was initially praised by analysts as an ingenious use of the Internet that could revolutionize retail pricing.
But Priceline has been beset by problems in recent months. Last month its grocery and gasoline licensee, WebHouse Club, announced it was shutting down.
President Daniel Schulman said the earnings report was disappointing, but noted that the company’s customer base has grown to 8 million.
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