Feeds

LookSmart chops third of staff

Dotcom war claims more casualties

  • alert
  • submit to reddit

Internet Security Threat Report 2014

LookSmart has chopped a third of staff after announcing it will miss Q4 targets.

The dotcom directory said it expected sales of $30 million to $31 million for the quarter, down on its previous estimate of $33 million to $36 million. It forecast a loss of between 14 and 15 cents, from previously expected losses of 12 cents.

In an effort to save $44 million per year, it will turn eleven operating groups into four, and cut 172 employees worldwide. It will also take a one-time charge this quarter.

The San Francisco outfit said it would quit non-core activities and pump its efforts into its listings businesses - which have pulled it $10 million in their first three quarters.

"The trends we identified in our prior guidance proved to be true both positive and negative," said LookSmart chairman and CEO Evan Thornley. "Untargeted advertising is declining while highly targeted online direct marketing is growing rapidly. However in the fourth quarter, the parts of our business that were weakening did so faster and to a greater degree than expected."

"At the same time, our highly targeted listings businesses grew over 40 per cent from the third quarter despite very negative industry trends."

LookSmart is due to report earnings on January 25.

Earlier this week online search and directory giant Yahoo! cut earnings forecasts for Q1, citing an anticipated dotcom ad sales slump. ®

Related Stories

BT spreads wings with $200m JV
Dotcom value drops 88 per cent in 2000
Yahoo! slashes forecasts
Directory sites doomed, says survey
Dotcom Death Race 2000
QXL shares going, going, gone

Providing a secure and efficient Helpdesk

More from The Register

next story
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.