Phase2 said it would let go about 40 people or 30% of its workforce as part of a restructuring to focus on traditional advertisers. Most of the cuts were to eliminate a telephone sales operation that was concentrating on dot-com business. Earlier this week, the company said it would not pursue a planned IPO due to market conditions.
Oxygen said that it had laid off 35 employees in its online unit. Those cuts are the second in recent months at Oxygen, which let go 10% of its Web operations staff in December. The cable network has grown slowly to 14 million homes, and last year it secured $100 million in new financing from Paul Allen's Vulcan Ventures. -- Catherine P. Taylor and Wayne Friedman
Copyright March 2001, Crain Communications Inc.