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

<p>HONG KONG: Sun Hung Kei's (SHK) SuneVision has reduced its </p><p>workforce by 13 per cent as it scales back its online auction operation </p><p>and closes its software service provider unit. </p><p><BR><BR> </p><p>The company said there had been "significant reductions" at its auction </p><p>website Red Dots, while Super-Office had ceased operations. </p><p><BR><BR> </p><p>SHK expects the recent restructuring to result in savings of HK$35 million a year. </p><p><BR><BR> </p><p>The layoffs affected 50 SuneVision employees, while the company has </p><p>relocated its headquarters to its Mega-iAdvantage data centre. </p><p><BR><BR> </p><p>Red Dots lost HK$171 million in the year to June, up from $46.5 million during the same period last year. </p><p><BR><BR> </p><p>SuneVision managing director, Sheridan Yen, said: "This is a </p><p>highly-competitive time in the information technology and ecommerce </p><p>sectors, and we have to adapt to changing market conditions in order to </p><p>operate efficiently and cost-effectively. </p><p><BR><BR> </p><p>"We are continuing with a range of proactive measures suited to a </p><p>significant period of consolidation and our streamlined operations will </p><p>act as a new platform for future growth." </p><p><BR><BR> </p><p>SuneVision said it has HK$1.84 billion in cash and securities, </p><p>which will be used to capitalise on new opportunities. </p><p><BR><BR> </p><p>It will now focus on data-related operations. </p><p><BR><BR> </p><p>Online auction websites are feeling the pinch of the economic slowdown </p><p>and the slump in online advertising. After failing to generate revenue </p><p>from online ads, auctioneer Go2HK.com recently dropped advertising </p><p>altogether on its revamped website, which launched last month in Taiwan </p><p>and Hong Kong. </p><p><BR><BR> </p><p>According to Go2HK.com managing director and co-founder, Alan Chow, the </p><p>company's revenue model was based on commission from sellers after </p><p>successful transactions. </p><p><BR><BR> </p><p>The decision to eliminate advertising on the site was also made after </p><p>advertisers requested larger ads for their money. </p><p><BR><BR> </p><p>Meanwhile, online auctioneers Emaimai, Yaz and Club citi have either </p><p>changed direction or closed. </p><p><BR><BR> </p><p>Yahoo remains the strongest player in the online auction market. </p><p><BR><BR> </p>