MEDIA-I: Lay-offs hit SuneVision's auction website

HONG KONG: Sun Hung Kei's (SHK) SuneVision has reduced its

workforce by 13 per cent as it scales back its online auction operation

and closes its software service provider unit.

The company said there had been "significant reductions" at its auction

website Red Dots, while Super-Office had ceased operations.

SHK expects the recent restructuring to result in savings of HK$35 million a year.

The layoffs affected 50 SuneVision employees, while the company has

relocated its headquarters to its Mega-iAdvantage data centre.

Red Dots lost HK$171 million in the year to June, up from $46.5 million during the same period last year.

SuneVision managing director, Sheridan Yen, said: "This is a

highly-competitive time in the information technology and ecommerce

sectors, and we have to adapt to changing market conditions in order to

operate efficiently and cost-effectively.

"We are continuing with a range of proactive measures suited to a

significant period of consolidation and our streamlined operations will

act as a new platform for future growth."

SuneVision said it has HK$1.84 billion in cash and securities,

which will be used to capitalise on new opportunities.

It will now focus on data-related operations.

Online auction websites are feeling the pinch of the economic slowdown

and the slump in online advertising. After failing to generate revenue

from online ads, auctioneer Go2HK.com recently dropped advertising

altogether on its revamped website, which launched last month in Taiwan

and Hong Kong.

According to Go2HK.com managing director and co-founder, Alan Chow, the

company's revenue model was based on commission from sellers after

successful transactions.

The decision to eliminate advertising on the site was also made after

advertisers requested larger ads for their money.

Meanwhile, online auctioneers Emaimai, Yaz and Club citi have either

changed direction or closed.

Yahoo remains the strongest player in the online auction market.