NBCi Falls Short, Lays Off 1501/18/2001 6:20 AM Eastern
NBC Internet Inc. said Thursday that it will cut 150 employees, representing
about 30 percent of its work force.
The company -- which has seen the value of its stock plummet 96 percent in
the past year -- also said it is reducing its revenue projections for 2001 from
$150 million to $100 million.
NBCi CEO Will Lansing said the company still expects to turn a profit by the
first quarter of 2002. 'But to reach this goal, we needed to make difficult
decisions on the operational side of our business to account for the challenges
within the online-advertising market,' he said in a prepared statement.
The cuts will come from all areas of the company, NBCi said.
Shares in NBCi closed at $76 on Nov. 30, 1999, the day of its initial public
offering. The company was formed through the combination of NBC and CNET's
Snap.com, Xoom.com, NBC.com, NBC Interactive Neighborhood, Videoseeker and a 10
percent equity stake in CNBC.com.
The company's stock broke $100 per share last January, but it has been on a
steady nosedive since then. Shares in NBCi had fallen 4.48 percent to $4 each by
2 p.m. Thursday, following word of the layoffs and revenue shortfall.
NBCi has gone through several management and branding overhauls since its
debut. When it first launched, nbci.com was
simply a corporate Web site that contained information about the company,
including a graphic at the top of the page that displayed the current price of
the company's stock. It relied on its xoom.com and snap.com commerce and
search-engine sites, but later folded those sites into nbci.com, hoping to
leverage the NBC brand.
Ads and promotions for the Web site have become ubiquitous on NBC properties
in recent months.
The company said Thursday that it will release more details about the cost
reductions and revenue projections Feb. 7.