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Terra Lycos to Axe 500 staff

News, 09 May 2001

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