Drkoop Cuts Its Work Force 35%

Embattled Internet health company Drkoop.com Inc. said it has laid off about 35% of its staff since the beginning of April, a move analysts said makes the company a more attractive takeover target. Earlier this week, reports suggested that Drkoop.com was going to merge with Drug Emporium Inc.’s unprofitable online unit. Neither company would comment, but analysts said the sweeping layoffs could indicate an acquisition is in the works. Drkoop.com had 185 full-time employees as of Feb. 29. Pressure on the company to prove its viability has intensified since March, when independent auditors questioned its ability to continue as a going concern because of a dwindling supply of cash. Shares in Austin, Texas-based Drkoop.com closed up 16 cents at $2.50 on Nasdaq. The shares have plunged from a high of $45.75 last July.