On Command Slashes Work Force 16%

On Command Corp., the largest U.S. provider of pay movies to hotel rooms, reduced its work force by 16% and said its revenue for the year will fall because of a decline in business travel.

The company didn’t specify how many jobs were affected. Denver-based On Command expects 2001 revenue of about $260 million, down from the $265.4 million it reported in 2000.

On Command has been hurt by lower occupancy rates in the hotels that use its in-room Internet, entertainment and business information services. The company also has delayed a new advertising initiative until the second quarter of 2002 and said it cut operating and other expenses. The reductions will save the company $10 million to $12 million a year, On Command said.