HONG KONG: Chinadotcom has warned it will slash staff numbers, reduce
office space and minimise marketing expenses in a major effort to cut
costs by about USdollars 50 million a year.
The company has also closed 'under-performing offices and business
lines', including the company's advertising network in Japan, 24/7.
A spokeswoman said the drastic cost-cutting measures lowered the bar to
breakeven, and were expected to trim costs by 60 per cent.
Chinadotcom chief executive officer, Peter Yip, said: "We have been
making corrections since last year to align our costs, but these moves
are much bolder and more aggressive to get us to breakeven as soon as
possible. We are taking decisive action now to become leaner to reflect
economic realities."
Staff reductions at chinadotcom will be made across the board and will
cut numbers from 2,100 to well below 2,000 by the end of the second
quarter.
The Hong Kong headquarters will also be 'streamlined and made more
cost-efficient', with management executives taking on dual roles and
responsibilities for portal operations on 'strong performance-based
compensation programmes'.
