Questia.com, an Internet research site aimed at students, has laid off 63 staffers, reducing the staff by 50%. The company cited the need to conserve cash in light of the general economic recession. Last May, Questia let go of 140 of its then 280 employees for much the same reason. Sixty-eight employees remain. Questia spokesperson Ann Brimberry told PW, "We thought it was important to be conservative with cash."

Employees were cut in all divisions, including marketing, engineering, technical and editorial. In its New York City office, which is responsible for rights acquisitions and publisher relations, the company laid off four account managers and administrative staff. Those remaining include publishing v-p Linda Cunningham, executive director of publisher relations Joana Jebsen and account manager Justin Wolske. Cunningham said, "We've got deals with 240 publishers. In New York, it's business as usual. We're just doing it with fewer people."

Brimberry declined to reveal the number of Questia subscribers, saying, "Week over week, we're seeing growth." She admitted that customer growth has been slower than expected, and the company was trying to boost subscriptions by committing more cash to marketing and advertising. She said Questia hopes to boost its performance in the coming months by adding direct marketing and expanding partnerships with America Online, Britannica.com and Princeton Review.

Despite the difficulty in attracting a sufficient number of users, Questia has no trouble finding investors and continues to raise cash; founder Troy Williams has raised $165 million since 1998, with a fourth round expected to close before the end of the year. Questia expects to reach positive cash flow before the end of 2002.