CNET Laying Off 120 In ‘Workforce Realignment’; 10 Percent Of US Workforce; Internal Memo
By Joseph Weisenthal - Wed 26 Mar 2008 01:17 PM PST
CNET (NSDQ: CNET), under pressure from an activist investor group, says it is laying off 120 employees, or 10 percent of its US workforce and 4.4 percent of its 2,700-strong total headcount, in a “workforce realignment”. In a just-filed 8-K, the company says the reduction is part of a plan to more appropriately allocate resources around key strategic initiatives. The layoffs, which will result in up to $4 million severance pay and up to $0.4 in other costs, are effective immediately.
The filing lists five specific areas CNET plans to work on:
-- “realigning and streamlining G&A and other central services”
-- “evolving the Company’s editorial organization to enable greater focus on content creation”
-- “innovating the Company’s technology infrastructure, including the adoption of open application programming interfaces, or APIs, and implementing other measures to enhance greater efficiencies”
-- “simplifying the Company’s sales approach to enhance sales productivity”
-- “implementing business unit changes to realign resources to support the Company’s strategic priorities and promote efficiencies”
The company continues to be locked in a battle with activist investors led by Jana Partners, which recently won a court ruling allowing it to nominate directors to CNET’s board. The company has vowed to appeal.
Update: We’ve obtained the full text of the internal memo sent out by CEO Neil Ashe this afternoon
Posted in: Companies, CNET, Money
