Lycos Europe NV will lay off 300 people, or 23 per cent of its workforce, as a result of the slump in the online advertising market, the company said Wednesday.
The cuts affect staff in Germany, France and Sweden. Lycos Europe will maintain a staff of slightly less than 1,000 in the 14 countries it has a presence in, a spokesman said.
In addition to reducing the headcount, Lycos Europe said it would reduce cost by focusing on search, communication, e-commerce, and key content channels. The company is also hoping to cut costs by better integrating acquired companies MultiMania SA in France and Spray Ventures AB in Sweden.
To reduce its dependency on advertising, Lycos Europe said it would try to exploit new revenue opportunities. Premium services, mobile services and e-commerce are seen as a potential source of revenue.
Lycos Europe claims to be the leading Internet destination in Europe, with about 25 million visitors generating 2.4 billion page views every month.