We heard about this yesterday, and put inquiries to the InfoSpace PR, but they never responded. Anyway, they’ve announced it officially today: Infospace has announced a restructuring plan, which will eliminate about 250 jobs. These layoffs, as a result of InfoSpace losing Cingular as its major mobile content distributor and technology user, which the company announced last month.
Some details:
— it will eliminate approximately 250 positions beginning in the Q3 of 2006 through mid-2007.
— it expects to record a pre-tax restructuring charge of approximately $6.5 million for severance costs, and between $6 million and $7 million for other charges, including facilities and costs to terminate certain agreements, in the Q3 of 2006. These restructuring charges include the previously disclosed closure of its Hamburg, Germany facility.
— InfoSpace also expects to record an impairment charge for intangible assets, including goodwill, in the Q3 of 2006. The company is currently in the process of estimating these charges and will disclose the estimates when they become available.
— Furthermore, the company expects to record additional pre-tax restructuring charges, potentially up to $2 million, in the Q4 of 2006 and through mid-2007 related to facilities, terminations of certain agreements and additional severance charges.
— Ed Belsheim, Chief Administrative Officer, will leave the company on January 1, 2007…he also resigned from the board, effective October 9, 2006.
My sources have also told me a few other detail points: InfoSpace has laid off about a hundred or so people already, and did a job fair yesterday, at the Luxe Hotel, on Sunset, for those people. Most of the layoffs are going to come from the LA office, and my sources say that it might be completely closed by mid next year… some of them will also come from the main headquarters in Bellevue.
Related:
— InfoSpace’s Shares Tank 22 Percent on Carrier Loss; Need To Windup?
— InfoSpace Loses Carrier Partner; Will รข
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