Asia Online has sacked 56 employees from its Hong Kong operation,
representing 18 per cent of the company's staff in the SAR.
The move was the latest in a round of lay-offs to hit the Internet
industry in Hong Kong, bringing the number of staff sacked to more than
1,000 since June this year.
The company said it had to reduce staff on its payroll from 900 to
844.
Asia Online was involved in 20 acquisitions in the past year and a half,
but said it "expanded too quickly".
The company said the cuts were aimed at reducing its costs and helping
it to become profitable.
Asia Online had earlier cancelled its plans to list for USdollars 100
million on the US Nasdaq.
The lay-offs also followed the recent announcement of the departure of
the company's chief executive and president Mr Kevin Randolph.
He was replaced by Mr Edward Roberto.
The company had reportedly raised an estimated USdollars 135 million in
venture capital in the past 14 months.