High-tech gloom hits CNet

CNet provides technology information and commerce services

The online technology information group CNet is shedding 15% of its workforce as it tries to weather the shake-up in the high-tech economy.

In announcing the cuts, which follow layoffs earlier this year, CNet said its outlook remained uncertain.

Chief executive Shelby Bonnie said they were due to a "deep and prolonged slowdown in the economy".

CNet has about 2,000 employees worldwide. The latest layoffs mean the company has sacked a quarter of its staff since the beginning of the year.

$23.4m loss

The company, which provides information and commerce services for the technology industry, said it had lost $218.1 million in the second quarter, compared with a net loss of $167 million, over the same period last year.

While we cannot predict when the economic environment will turn more positive, we can manage our business and address key opportunities accordingly

CEO Shelby Bonnie

After adjusting for investment results and other one-time events, CNet lost $23.4 million, or 17 cents per share, compared with an operating loss of $5 million, or four cents per share, last year.

The losses came despite a growth in traffic to CNet's websites and an increase in the number of shopping leads it had generated.

CNet said it averaged 38.4 million page views during the quarter, up 26% from the second quarter of last year.

The San Francisco-based company said leads to merchants during the latest quarter had risen by 37% to 29.4 million.

"While we cannot predict when the economic environment will turn more positive, we can manage our business and address key opportunities accordingly," said Mr Bonnie.

By the end of trading on Tuesday on the Nasdaq stock market, CNet had fallen 49 cents, nearly 5%, to close at $9.65.