CReATION: Asia Online lays off 56 in latest blow to HK dotcom sector

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.