Reed Elsevier to Spend $1.2 Billion on Web

Anglo-Dutch publishing giant Reed Elsevier said it would invest $1.2 billion to bring its traditional operations online and boost sagging earnings. The company also said it will cut 1,500 jobs, or about 6% of its work force, as it reported an 8.2% decline in pretax profit for 1999. Reed Elsevier, which specializes in legal, scientific and business publications, is known for its entertainment business magazine Variety, electronic news database Lexis-Nexis and scientific publication Cell. The company said it will pump $400 million into online activities every year over the next three years, an investment aimed at achieving earnings growth of at least 10% and Internet sales of $1.6 billion by 2002.