HONG KONG: Asiacontent.com has closed its internet solutions
operations in Singapore, Hong Kong and China, and will spin off its
business in Korea and Taiwan, while layoffs have also hit its
joint-ventures, DoubleClick and MTV Asia Online.
The move brings the company's total head count down to 104 from 278 in
the second quarter of this year and almost 600 at its peak last
year.
Asiacontent.com will now focus its resources on its joint-ventures,
DoubleClick Media Asia and MTV Asia Online, and expects to reduce
expenses by more than US$500,000 each month.
Chris Justice, chief executive officer of Asiacontent.com, said the move
was part of a cost-cutting drive.
Citing a tough business environment, he said Asiacontent.com was
"further reducing costs in these business units (DoubleClick and MTV
Asia Online) to more quickly bring the company to profitability".
Steve Moss, chief executive officer, DoubleClick Media Asia, confirmed
there had been layoffs, but declined to provide an exact figure.
"We've always taken a look at the end and at the start of each quarter
to increase efficiencies at the company. There have been some layoffs
recently and cutbacks in other areas as well, but I can't provide more
details. It is part of our continuing ongoing strategy," said Moss. "We
are seeing layoffs across the board in every sector. And the
redundancies here have not been overly aggressive as what other
companies have had to go through."
He also stressed that the strategic direction of DoubleClick Media would
remain unchanged in Asia and that the company's clients would not be
affected by the recent developments.
"The changes will allow Asiacontent.com to focus its time on DoubleClick
operations as it steps out of web solutions. Our business is not
changing in terms of strategic consequences. It is just giving
Asiacontent.com more time to invest in us. We have always operated as
separate companies," said Moss.
Asiacontent.com's Hong Kong headquarters will complete existing
projects, while its client work in Singapore will be completed or
assigned to a company led by its Singapore-based management.
In Taiwan, the company transferred contracts and some assets and staff
to a new company led by Michael Wu, general manager for
Asiacontent.com's Taiwan operation.
An agreement has also been reached to spin off its Korea unit, which
will be led by Bryan Lee, country manager for Asiacontent.com.
Asiacontent.com will retain a 20 per cent stake in its Korea and Taiwan
spin-offs, but this will not extend to its involvement in management or
operations. It will also waive all financial obligations.