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InfoSpace Cuts Jobs

The company expects charges starting in the third quarter.


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will eliminate roughly 250 jobs beginning in the third quarter as part of its plan to restructure its business.

The company exects to record a pretax charge of around $6.5 million for severance costs and between $6 million and $7 million for other charges in the quarter. The restructuring charges include expenses for closing its Hamburg, Germany, facility.

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InfoSpace also anticipates an impairment charge for intangible assets, including goodwill, in the third quarter. Furthermore, the company will take up to $2 million of added pretax charges in the fourth quarter through mid-2007.

"These decisions, while difficult, are critical to the long-term success of InfoSpace," said Jim Voelker, chairman and CEO. "Despite the setback in our mobile media business, our online and mobile infrastructure businesses generate solid cash flow. In addition, we have a strong balance sheet with over $400 million in cash."

InfoSpace also said Ed Belsheim, its chief administrative officer, will leave the company on Jan. 1. Belsheim has already resigned from the board, a move that was effective Oct. 9.