As part of its strategy to reduce operating costs, NBC Internet (NBCi) is laying off 150 staff positions, or about 30% of its work force. Staff positions are being eliminated within all areas of the company. NBCi said the cost- reduction initiatives are aimed at "allowing the company to attain profitability amid a slowing online advertising market." NBCi said it still expects to become profitable before non-cash charges and TV promotions in the fourth quarter of 2001 or the first quarter of 2002. NBCi hopes the layoffs will offset an expected revenue shortfall due to the soft online advertising environment; NBCi is reducing its revenue projections for 2001 to about $100 million from $150 million.
Copyright January 2001, Crain Communications Inc.