Excite@Home axes 500 jobs, eyes bankruptcy

Cyberbiz Brief

Excite@Home, the nation’s largest high-speed Internet service provider said Tuesday it will lay off 500 staffers in the next three months and cut back on the features it provides on its Excite Internet portal. The announcement comes on news that the Redwood City, Calif.-based company will file for Chapter 11 bankruptcy protection late this week or early next week unless it receives an unexpected cash infusion.

Excite subsid MatchLogic will shutter as part of Excite@Home’s downsizing. MatchLogic had been the company’s Internet marketing and advertising subsidiary. The latest layoffs represent 25% of the company’s workforce. Excite@Home will have 1,350 employees remaining after the latest staff reduction.

While Excite said that it continues to explore options with respect to its liquidity needs and capital structure, the company doesn’t have enough cash to cover its operating costs and $800 million in debt.

Excite’s latest troubles make its 4 million subscribers and technology an attractive takeover asset for AT&T. A potential bid was discussed at AT&T’s most recent board meeting held last week. AT&T has majority control of Excite@Home and remains its largest shareholder. AT&T inherited its @Home stake and board representation from its acquisition of cable TV leader Tele-Communications.

Excite@Home’s stock closed at 27¢ on Tuesday, its lowest price ever, since commanding $99 share prices at its peak in 1999.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Digital News from Variety

Loading