AltaVista says it will cut 25 per cent of staff

Search engine AltaVista, a division of Internet holding company CMGI Inc., announced on Thursday that it would lay off 25 per cent of its staff, with most of the cuts coming at its Palo Alto, Calif. headquarters.

The reduction of 200 employees represents a “further alignment of resources” as AltaVista moves toward being a company that focuses on selling search technology for the Internet and corporate networks, confirmed company spokesman Jim Shissler. The company made a similar workforce cut of 25 per cent in September. At that time, the company also quit the media portal business.

AltaVista has not been immune to the softness in the online advertising market, said Peter Mills, a [email protected] managing partner and executive adviser to AltaVista, in a statement. The company is making progress in selling search engine software to corporate customers and has a customer base of more than 1,100, the company said.

On Jan. 10, AltaVista pulled an initial public offering of 14.8 million shares of common stock, citing poor market conditions. CMGI owns 81.2 per cent in AltaVista, while Compaq Computer Corp. owns 18.2 per cent of the AltaVista stock, Shissler said.

Shares of CMGI [CMGI] traded down 8.19 per cent or US$0.59 to $6.65 a share during mid-afternoon trading Thursday.

Would you recommend this article?


Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.

Jim Love, Chief Content Officer, IT World Canada

Featured Download

Related Tech News

Our experienced team of journalists and bloggers bring you engaging in-depth interviews, videos and content targeted to IT professionals and line-of-business executives.

Featured Reads