Lycos Sheds 200 Jobs In Cost Cutting Move

Lycos has announced plans to cut a further 200 jobs from its European operation and is reducing its marketing budget in an attempt to break even by the end of the year.

The advertising downturn has taken its toll on the online portal and the job cuts are the second part of a restructuring programme, which has already seen the company make 300 staff redundant. Over the last year the company has axed almost 500 staff, leaving it with a total workforce of around 900.

Lycos, which operates in ten markets in Europe as well as in Asia and the US, aims break even in terms of earnings before interest, tax, depreciation and amortisation in the fourth quarter of 2002.

The company recently reported a 21% year on year revenue increase in its results for the six months ending December 2001 and is believed to be discussing possible content partnerships with mobile phone operators and handset manufacturers in an attempt to attract new revenue streams.

The difficult economic climate has taken its toll on some of the most high profile players in the dotcom industry. Last November Yahoo! announced plans to cut 400 jobs world-wide as part of a move to restructure its business (see Yahoo! Cuts 400 Jobs Worldwide) and in December Excite UK closed with the loss of all of its 48 staff after failing to find a buyer (see Excite UK Closes With 48 Redundancies). More recently Freeserve cut 18 positions from its editorial and advertising sales team following a five-month review of its portal business (see Freeserve Cuts 18 Positions).

Lycos: 020 7881 6500 www.lycos.co.uk

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