Chinadotcom to scale back, slash 400 jobs

Bloomberg News Service

HONG KONG — Chinadotcom Corp. said it will cut about 400 jobs, close offices and consolidate operations worldwide by the end of the second quarter to reduce costs.

China's largest Web site operator said it will have fewer than 2,000 employees by the end of the second quarter. It employed 2,417 people at the end of December, the company said in a press release distributed by PR Newswire.

"Chinadotcom will be reducing headcounts through attrition and disposal of noncore operating assets," said Chief Operating Officer Peter Hamilton, without specifying which assets may go. "We need an organization that is appropriately shaped to the business environment."

The Hong Kong-based company and rivals Sina.com and Sohu.com, all listed on the Nasdaq Stock Exchange, now lag behind indexes that they outperformed last year. The companies are scrambling for a Chinese online advertising market valued at about $80 million.

Chinadotcom said it will close or scale back operations in Korea, Singapore, Hong Kong, Taiwan, China, Japan and the United States.

The Web site operator's shares rose 28 cents, or 11 percent to $2.78. Sina.com shares rose 1.8 percent to $1.75, and Sohu.com was unchanged at 90 U.S. cents.