Engage to Cut Jobs

Online marketing firm Engage Inc. said that it plans to cut about 13% of its work force and record a charge to consolidate its business in a move to accelerate profitability. The company, majority-owned by Internet incubator CMGI Inc., said it is consolidating its businesses globally from five divisions to two, Engage Media and Engage Software, and cutting 175 jobs to sharpen its focus on providing interactive marketing services. Engage is the second company in which CMGI has a major stake that has announced job cuts and consolidation. Internet search service AltaVista Co. said last week it will cut 25% of its staff and phase out of the portal business to refocus on its search business. In a separate statement, the company said its fiscal fourth-quarter cash operating loss totaled to $23.9 million, or 14 cents a share, compared with a loss of $14.5 million, or 16 cents a share. It said revenue for the quarter grew to $66.7 million from $16.5 million. Wall Street analysts had expected Engage to post a cash loss of 28 cents a share, according to First Call/Thomson Financial. Engage shares fell 44 cents to close at $8.06 on Nasdaq before the news.