MEDIA-I: Lycos revamps model after layoffs

<p>SINGAPORE: Lycos Asia will revamp its business model to lessen its </p><p>dependence on online advertising as the economic climate worsens. </p><p><BR><BR> </p><p>The shift in strategy follows its move to retrench 200 staff, </p><p>representing 60 per cent of its workforce, and centralise its regional </p><p>operations in Shanghai and Singapore. The company will maintain a </p><p>minimal head count in its other offices in Asia. </p><p><BR><BR> </p><p>The cutbacks took place earlier in the month and included around 28 </p><p>people being retrenched in Hong Kong and another 28 people in China. </p><p>This will leave four positions in Hong Kong and around 80 staff in </p><p>China. </p><p><BR><BR> </p><p>The Singapore office will service the Lycos portals for South Asia </p><p>including Singapore, Malaysia, India, Indonesia, Philippines and India. </p><p>Shanghai will service China, Hong Kong and Taiwan. </p><p><BR><BR> </p><p>The company is cutting costs so it can become profitable sooner and </p><p>counter the global economic downturn. </p><p><BR><BR> </p><p>It has also been earning revenues from developing corporate sites - such </p><p>as My Singtel and SingNet - and by charging firms wishing to put content </p><p>on Lycos' portals. </p><p><BR><BR> </p><p>But it plans to focus more on email and wireless marketing as it remakes </p><p>the company to offer advertisers a more complete digital marketing </p><p>service. </p><p><BR><BR> </p><p>Additional revenues will come from ecommerce and by charging web users </p><p>for some services and content. </p><p><BR><BR> </p><p>Contrary to news reports in Hong Kong, Lycos Asia's evenly-split </p><p>joint-venture partners - Terra Lycos and Singapore Telecommunications - </p><p>remain committed, said Andy Pe, Lycos Asia corporate affairs </p><p>manager. </p><p><BR><BR> </p><p>He said the firms injected more funds into the business following Lycos' </p><p>take-over earlier this year of Myrice.com, a mainland China web </p><p>portal. </p><p><BR><BR> </p><p>The extra liquidity increased Lycos Asia's market capitalisation to more </p><p>than US$50 million, according to Pe. </p><p><BR><BR> </p><p>Some of Lycos Asia's major clients - including online advertising firms </p><p>BMC Media and Engage - have either gone out of business or heavily </p><p>downsized their Asian operations. </p><p><BR><BR> </p>