OWWch, More Cuts

Orbitz Worldwide said it would cut $20 million to $25 million in annual expenses, on top of the $20 million announced in November that brought with it 100 job cuts. Officials today did not say how many positions the current action would eliminate, but outgoing president and CEO Steve Barnhart said, "On the people side, this is much more heavily focused on outsourced or external contractual resources. We've had time to make deeper adjustments in deeper areas and adjust a lot of our external sourcing arrangements. The largest single area would be in our use of outsourced technology resources, whether in development or operations, but there are adjustments in a number of other relationships, as well."

Together with November's action, the cuts represent about 6 percent of the company's 2007 full year operating expenses.

Barnhart said that the cuts reflect general economic weakness more than anything specific to Orbitz in the December quarter.