CNET Plans To Reduce Workforce By 15%

Posted on July 25, 2001

CNET Networks, Inc., a technology media company, reported a quarter two loss and announced that it will reduce its workforce by 15% because of the weak advertising environment. CNET reported net revenues for the second quarter of $71.1 million, compared to revenues of $104.3 million for the same period of 2000. CNET Networks' net loss in the second quarter of 2001 was $218.1 million, or $1.60 per share, versus a pro forma net loss of $168.0 million or $1.24 per share in the same period last year.

CNET also reported that it would reduce its workforce by 15%. This is in addition to layoffs of 10% of its workforce earlier this year. CNET reported that the reductions will be implemented by mid-September.

``While we cannot predict when the economic environment will turn more positive, we can manage our business and address key opportunities accordingly,'' said Shelby Bonnie, chairman and chief executive officer of CNET Networks. ``We will continue to focus on building market share and deepening relationships with our core users and marketers, while reducing our long-term cost structure.''

On June 30, 2001, CNET Networks' cash and marketable debt securities were valued at approximately $275 million. For the third quarter of 2001, CNET Networks' management estimates net revenues will be in the range of $70 million to $75 million. The company is targeting 2001 annual revenue of between $290 and $300 million.