AltaVista Inc has slashed its US workforce by a quarter, it announced today.

Some 225 people out of a US workforce of 900 people have lost their jobs - that's on top of the 40 or so who were booted out earlier this year.

The move - along with a consolidation of office space and building - is intended to "achieve near-term profitability", company executives said today.

As a result, AltaVista now believes it will be profitable, excluding amortisation expenses, in the quarter ending January 31, 2001.

"While many of these business decisions have been difficult, we are now in a position to unleash our search expertise with a clear, singular focus to penetrate every layer of the search market for both consumers and businesses," said Rod Schrock, president and CEO of AltaVista Company.

"This strategy is true to our brand and creates a distinct leadership position for AltaVista on a global scale," he said in a statement.

The shake-up at AltaVista sounds suspiciously as if parent, CMGI, has simply run out of patience with AltaVista and is demanding a return on its investment.

Employees in Britain and Europe are unaffected by the cuts. ®