StarMedia Fires Workers

StarMedia Networks Inc., the first Latin American Internet company to sell shares to the public, fired 15% of its employees under a plan to turn a profit by the end of next year. The New York-based company said it will take a charge of $2 million to $4 million in its third quarter to account for the costs of streamlining its business. The company said the moves will save between $15 million and $20 million next year. StarMedia said the cuts will put the company on track to turn a profit in its fourth quarter of 2001, a year earlier than anticipated. The company’s stock, which has fallen more than 71% this year, fell 50 cents to close at $11.50 on Nasdaq.