CNET cuts global staff by 15%

by Staff, Brand Republic 25-Jul-01, 11:51

SAN FRANCISCO - Technology news and media group CNET Networks is to cut 15% of its global workforce after the weak advertising market caused wide second-quarter losses.

Net losses for the quarter were $218.1m (£153.3m), compared with net losses of $167.9m (£118m) in the same quarter a year ago. Revenues fell by 31% to $71.1m (£50m), compared with $104.3m (£73.3m) a year ago.

The company also revised its revenue estimates for the next quarter to $70m-$75m (£49.2m-£52.7m) and said revenue for the year will be between $290m-$300m (£203.9m-£210.9m). Analysts had forecast $76.9m (£54.1m) for the quarter and $312m (£219.4m) for the year.

CNET employs about 1,900 people and about 285 jobs will be cut in mid to late September. The cuts will lead to a third-quarter charge of $6m-$7m (£4.2m-£4.9m).

CNET said that registered users had increased 26% to 6.8m and daily page views also grew 26% to 38.4m. However, revenues were hit by the soft online advertising market and the company could see no upturn.

CNET's websites sites, which include ZDNet.com and CNET.com, publish news about the technology industry as well as computer and software reviews. The sites' major advertisers are computer and technology companies, which have reduced their adspend in response to the downturn in the sector.