CUECAT COMPANY LAYS OFF WORKERS

By: Staff Reports Digital Convergence Promises To Fulfill Contracts


The CueCat has used up some of its nine lives. The Dallas
Morning News reported this weekend that the CueCat's maker,
Digital Convergence Corp., laid off most of its 225 employees on
Friday.

Employees in Dallas reported that about 160 workers were
dismissed there, and the company said there were also layoffs in
its New York offices. "The staff has been significantly reduced,"
a Digital Convergence spokeswoman told the Morning News.

The spokeswoman said Digital Convergence would continue to honor
its contracts. The company's CueCats are used to scan bar codes
in print publications, which took readers to Web sites for more
information. The company also offers a device to pick up special
TV signals that link to the Internet.

The Morning News' owner, Belo, owns about 7% of the
company, having invested nearly $40 million. "Belo is going to
continue with the Digital Convergence technology in the same way
that it always has," Belo Senior Vice President Skip Cass told
the Morning News.

NBC and Forbes have also been using the technology, which
was criticized by some technology columnists for being clumsy and
impractical.



Copyright 2001, Editor & Publisher.