NBC Internet (NBCI) says it will cut 150 jobs, or 30% of its staff, as part of cost reduction initiatives aimed at helping the company attain profitability amid a slowing online advertising market. The staff cuts will come in all areas of the company.
Shares of NBCi were recently down 7.5% to $3.88. The stock has traded as high as $106.13 within the past year.
NBCi is reducing its operating costs in line with new revenue projections for 2001, which have been reduced to approximately $100 million. The company's previous projection for 2001 revenues was $150 million. NBCi anticipates becoming profitable in the fourth quarter of 2001, or the first quarter of 2002.
"We are determined to reach profitability within the same time frame we reported at the end of the third quarter 2000," said Will Lansing, CEO of NBCi. "But to reach this goal, we needed to make difficult decisions on the operational side of our business to account for the challenges within the online advertising market."