AltaVista Cuts More Jobs Amid Ad Slowdown

AltaVista Co., a unit of CMGI Inc., said it cut 200 jobs, or about a third of its work force of about 600, to reduce expenses at the Internet search service after advertising revenue growth slowed. Meanwhile, CMGI said it was unlikely to meet previous earnings and revenue targets for fiscal 2001. The Andover, Mass.-based company said it would provide further guidance on March 31 when it reports fiscal second-quarter results. The job cuts at AltaVista follow the elimination of 225 jobs in September, or about a quarter of the company’s work force of 900 at the time. The Palo Alto-based company added staff after the September reduction to focus on selling its Internet search technology to other businesses. Before that, AltaVista’s revenue had come primarily from selling ads on its Web site. Shares of CMGI closed off 41 cents at $6.84 on Nasdaq, before the company issued its profit warning. The stock has plunged 94% in the past year, leaving CMGI with a market value of about $2.18 billion.