InfoSpace lays off 115, announces revamp

Monday, 07 April 2003, 19:30 IST
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BELLEVUE: Internet company InfoSpace Inc. said Friday it is laying off one-fifth of its staff and restructuring its business. The Bellevue-based company, which provides directory listings, Internet searching capabilities, news and other information to Web sites and wireless devices, said it is laying off about 115 people, mostly in the Seattle area. The company is also refocusing around its "core business strategies." Most of the layoffs, which took place across the company, went into effect immediately, said InfoSpace spokesman Adam Whinston. The company now has about 475 employees. Whinston said the company will focus on its core businesses, including providing search-engine capabilities and directory listings to Web sites; online credit-card processing software for merchants; and services for wireless telecommunications companies. Chief executive Jim Voelker, who replaced founder Naveen Jain late last year, also wants to cut costs and make the company more efficient, Whinston said. InfoSpace is focusing less on ventures such as Hypermart, which builds and hosts Web sites for small businesses. Hypermart, which was part of InfoSpace's 2000 acquisition of Seattle-based Go2Net, "was not a significant contributor of revenue," he said. The change is the latest evolution of the company that rode the Internet bubble to the top of the stock market — at one point trading at more than $1,300 a share in March 2000. It fell so low that last year the company issued a 10-for-1 reverse stock split in order to meet Nasdaq's trading minimum requirements. InfoSpace stock closed down 83 cents, or 6.4 percent, to $12.18 a share on the Nasdaq Stock Market. In after-hours trading, the stock fell another 43 cents. The company has undergone numerous executive changes, including the departure of Jain. The company also sued Jain and another former employee, accusing them of violating noncompete clauses. Jain also is accused of breaching his fiduciary duties. Jain, who has since started another company, Intelius, has denied the allegations in the lawsuit, which was filed in March.
Source: IANS
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