2nd round of pinkslips follows Aug. cuts
NBCi, the Peacock’s Internet wing, announced a second round of major layoffs today, with an estimated 140 employees, or about 30% of the Netco’s workforce, in the Burbank, Gotham and San Francisco offices receiving pinkslips.
The company restated its revenue projections for the 2001 downward from $150 million to $100 million. Execs said they still expect the Netco to turn a profit in late 2001 or early 2002.
NBCi previously axed 170 employees in a cost-cutting move in August. Prexy and COO Edmond Sanctis also resigned from the company and a restructing of the Netco’s offerings was announced, with disparate sites Xoom.com, Snap.com and AllBusiness.com combined into one.
NBCi said more details on the restructuring will be made available when the Netco releases its fourth quarter earnings on Feb. 7.
Calls to the company seeking comment were not returned, although a statement was released.
“We are determined to reach profitability within the same time frame we reported at the end of the third quarter 2000,” NBCi CEO and Director Will Lansing said in a statement. “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.”
In the January issue of eV, NBCi’s Lansing said that the Netco was “past massive layoffs.”
The company’s stock closed at $4.19 Wednesday, down from a one-year high of $106.13 that was reached in late January 2000. In early trading Thursday, the stock was down 3% to $4.06.