Terra Lycos, the ISP formed last year by the merger of telecoms group Terra Networks with online portal Lycos, yesterday announced it would lay off 500 staff worldwide – some 15% of the total workforce – as it seeks to drive down costs.

Many of the job losses result from the post-merger integration of the two companies, and they will consequently hit hardest in regions where both had a strong presence – such as Latin America and the US Hispanic market.

The group also posted slightly lower-than-expected Q1 revenues of E178 million ($157m), 60% up on Q1 2000 but down by 6% on the last quarter following the slump in online advertising.

News sources: Financial Times; Advertising Age - Daily Deadline