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Infospace To Cut 20 Percent of Jobs; Reducing Costs

By Rafat Ali - Thu 03 Jan 2008 10:15 AM PST

Infospace, which has now sold off all of its mobile businesses and fully focused on online search, will cut about 35 jobs, or about 20 percent of its work force, and take Q4 charges of $7 million to $8 million as a result, the company announced today. Also, it expects the cuts to reduce costs by about $7 million to $9 million. The company will now focus on its search engines like Dogpile.com and WebFetch (who ever uses them?)...also, it has long-term agreements with both Google (NSDQ: GOOG) and Yahoo (NSDQ: YHOO) to deliver their search results and text-based ad listings to its network and affiliates through 2011.

Also, the company has appointed Bruce Allenbaugh to the newly created position of Chief Marketing Officer. Among other things, Allenbaugh served as VP, Marketing for Avenue A (now aQuantive). More in releases here and here.

Posted in: Companies, InfoSpace, Industry Moves

Tags: infospace,

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2 Responses:
  • From JP Thu 03 Jan 2008 03:16 PM

    “Dogpile.com and WebFetch (who ever uses them?)...” - Exactly

    I guess I am dumbfounded by InfoSpace’s direction.  Focusing on a market that has long been won by Google (let alone Yahoo/MSN - Live) seems futile.  What are they going to actually going to be able to accomplish?  It seemed like their mobile division was an area where they had more opportunity and less fierce competition right now.  Whether that opportunity was mismanaged or to much of a financial drain its hard to tell.

    It will be interesting to see how InfoSpace fares and also if Motricity can do something with the mobile piece.

  • From Captain Obvious Fri 04 Jan 2008 01:05 PM

    “It seemed like their mobile division ... where they had more opportunity ... was mismanaged”

    Congratulations. You just earned the understatement of the year award.

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