By: Staff reports
Broadcast Network Streamlines Broadband Effort
(The Hollywood Reporter) NBCi said Tuesday that it will lay off
20% of its work force, or 170 jobs, as the peacock network’s
separately traded Internet unit reorganizes in an effort to meet
its goal of profitability by mid-2002.
The company said the layoffs will occur across the board by year’s
end, cutting the work force to 680 employees from 850.
NBCi chief Will Lansing said in June that the company would reorganize,
but there were no plans for layoffs at that time. NBCi announced to
Wall Street then that its revenue would fall short of expectations,
sending shares 30% lower. NBCi closed Tuesday at 11, well off its
all-time high of 106 1/8.
NBCi was formed last year by the combination of Xoom.com, the Snap
Web portal and NBC Internet assets. Lansing said in June that the
company would drop the Xoom and Snap names and consolidate under the
NBCi umbrella. It is expected to spend heavily on promoting the NBCi
brand during the fall television season.
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