CNET slashes 120 jobs
27 Mar 2008 | 11:47 GMT
Plummet sharelines
CNET, THE ONLINE technology media company, rightsized 120 workers yesterday claiming that it was a necessary move in order to focus on its restructuring and long term growth efforts.
The move comes as the company faces hostile board takeover from their investors, Jana partners hedge fund, after a court ruling in early March. Jana Partners holds about 10 per cent of CNET’s voting stock and is leading a coalition of investors to force the company to 'revitalise' and hike its share prices.
Perversely, this is exactly the effect the job cuts had on CNET’s share prices yesterday, which rose in after hours trading as soon as the news of the job losses broke.
A memo quoted by PaidContent has NET Chief Exec, Neil Ashe, saying that the firings were crucial 'to drive greater efficiencies in the business'.
CNET has had trouble keeping up with the competition from several other technology news sources (cough) and its expensive restructuring could also set the outfit back up to $4 million, so it's little wonder the flailing company had to cut off the excess.
The job cuts are apparently effective immediately. µ
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