Rumours that Netscape Communication's Australian operation is on the verge of closure have strengthened with the news that Netscape's office in Hong Kong has abruptly and quietly closed down.
All that Netscape in Australia revealed by press time was that a change of business model will effect the way it sells products and services in Australia and in various territories around the world.
According to a statement issued yesterday, details of the company's new local structure are unavailable, although Netscape has said that its worldwide professional services division will remain in Australia.
Xu who was reached at the company's US headquarters earlier this week, explained that Netscape is revamping its channel strategy in certain markets around the world in order to grow the business and increase profitability.
"The Hong Kong office closed down, and the reason for the restructuring for Asia-Pacific is really trying to see which sales model is functioning well right now and how we can cut costs," Xu said. "Because our company strategy going forward is looking to increase our profit margins, cutting down costs is just as important as increasing revenue."
Netscape's offices in Japan and Singapore will remain in place, and the Singapore office will continue to serve as the headquarters of Netscape's South Asia operations.