New York-based online/offline publisher Primedia Inc. announced Thursday that deep staff cuts and a freeze on salaries and hiring would be implemented to cushion widening quarterly losses.

With its unprofitable Internet subsidiaries, including the About.com portal, performing poorly in the quarter, Primedia reported net losses of $293 million ($1.29 per share) in the most recent quarter, more than 400 percent wider than the $56.3 million in losses in the same year-ago period.

Primedia did not specify how badly the About.com subsidiary performed in the quarter. While the company touted a 142 percent jump in new media sales of $20.8 million, up from $8.6 million last year, Primedia said the new media sections of its operations were unprofitable.

"On a cash basis, new media cash revenues are expected to exceed cash expenses in 2002 and will be very close to that point in fourth quarter 2001," Primedia said.

Primedia, which was forced to shutter its venture capital unit and renegotiate its investments in Brill's Content recently, confirmed earlier reports that major staff cuts were implemented at About.com, the niche-topic portal it acquired last year.

It said about 60 percent of the staff at About.com were let go, a move that lowered the cost structure by 70 percent. "Headcount has been reduced in all other operations," the company said, "including corporate, by approximately 8 percent.

"Additionally, all salaries and hiring are frozen and discretionary expenses including travel are being reduced by 50 percent. These productivity measures will benefit fourth quarter 2001 and beyond," the company said.

With published reports swirling that majority shareholder Henry Kravis was pushing for the sale of some of the Primedia's unprofitable titles, the company made it clear that new media products that cannot be turned profitable in the next few months will be shut down or sold to immediately eliminate the cash drain.

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Primedia CEO Tom Rogers, said to be on the hot seat because of the company's financial problems, tried to put a positive spin on the latest results.

" Our core traditional business currently generates more than $300 million of EBITDA annually, our new media businesses will be cash breakeven soon and we continue to see growth across revenue streams representing two-thirds of our revenues, despite the severe advertising recession," Rogers said in a statement.

He said multiple buyers had expressed interest in the company's properties and hinted that some titles would be sold over the next few months. "(We) are moving ahead with the asset sale process and will announce transactions over the next few months. The asset sales will provide even more liquidity."

"While brand advertising is down, we are moving swiftly and aggressively to combat this weakness by bringing new media to cash breakeven, shutting down or selling operations that cannot be made profitable in the near term and imposing broad cost reductions," Rogers added.

Following its $515 million purchase of EMAP USA, Primedia said about 12 percent of staff had been eliminated and several offices were closed as part of the integration into Primedia's Consumer Magazines and Media Group

"These cost actions, coupled with clear synergies in distribution, production, cross selling and leveraging advertiser bases, are expected to result in EBITDA in excess of $62 million in 2002, with $50-55 million of that incremental in 2002."

Primedia said expected losses from the winding down of unprofitable properties would be in the range of $6.9 million, declining from $9.1 million in second quarter this year.

Shares in Primedia was trading up a shade at $2.00 Thursday midday. The company has seen its stock slide almost 90 percent since last October's year-high of $16.50. The 52-week low is $1.70.