Chinadotcom slashes costs to reflect reality

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