Chinadotcom slashes costs to reflect reality

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'.

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