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In a move aimed at avoiding a shutdown, Silicon Alley kids network MaMaMedia Inc. has implemented its third round of layoffs this year with 55 more job cuts.

The layoffs, which represent an 80 percent reduction in the force, leaves a bare-bones crew of 15 people to keep the network of kids sites going as it looks for a possible merger or acquisition.

Idit Harel, MaMaMedia's chief executive officer, told atNewYork the latest round of staff cuts was necessary to put the company on "energy saver status."

"I want to make it clear that we are not shutting down. We have retained a very strong team of 15 employees to keep the company running and demonstrate the value of our assets." Harel also said MaMaMedia is "open-minded about a possible merger, acquisition or investment."

The rapid turn for MaMaMedia's fortunes helps illustrate the flash frost that has hit the start-up scene since the spring tech sell-off began. For example, last September the media company was eyeing a public offering after it deposited $61 million in funding, which followed a $50 million investment round from J. H. Whitney & Co.

Then came the rumblings of 2000 and the ongoing market correction. Amid "terrible market conditions", Harel said the company she founded in 1995 was forced into two rounds of layoffs in June and October, 20 percent and 40 percent respectively, of MaMaMedia's 150 employees.

"All these staff cuts were necessary to reduce expenses to survive these terrible market conditions. Our energy-saver team will remain on board to deliver on all our commitments to our partners," Harel said.

"Like many other companies, we were planning to go public this year but this is not a good time to raise money in the public or private markets. We have to use the money we have smartly and look for other solutions."

She touted MaMaMedia as the "largest registered community of kids in the world," saying the company was successful in attracting blue-chip advertisers like Eastman Kodak, Mattel, Nintendo, Lego and Eastman and General Mills Inc.

"We are doing the best we can to conserve the value of all of MaMaMedia's assets. We are looking at a (merger or acquisition deal within the next 6-10 months," she added.

MaMaMedia has a number of high-profile partnerships with Internet content providers, including AOL, StarMedia, EarthLink, Disney's GO Network, Time Warner's Road Runner, Netscape's Netcenter KidZone, and Microsoft's WebTV.

* Ryan Naraine is assistant editor of atNewYork.com.