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Home / Technology

Internet inertia leads to job losses

22 Nov, 2000 07:28 PM2 mins to read

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By DANIEL RIORDAN

Wilson & Horton, publisher of the New Zealand Herald, is laying off about 10 workers from its W&H Interactive division, blaming the market's slow uptake of internet products.

W&H Interactive general manager Mark Ottaway said "nine or 10" of the division's 35 staff were likely to go. Decisions on who would be made redundant would be made over the next two weeks.

The division's editorial staff, responsible for publishing the Herald Online, would be integrated into the NZ Herald's operations. Online and offline advertising and marketing functions may be integrated within the Herald later.

The division would continue to promote its other internet products, including travel and financial offerings, but would not be developing new offerings.

The downscaling reflected a worldwide drop in confidence for online media, said Mr Ottaway.

The market was not growing at the rate predicted when the division was built up to its current staff levels a year ago.

Share prices of most internet companies worldwide have been in the doldrums for most of this year.

Many net retailers have been scaling down or closing, and online media have been forced to slash their business expectations.

The market's lack of confidence in the net's money-making potential was summed up by comments last week from Rupert Murdoch, head of multimedia company News Corp.

He said he did not look upon the net "as a profit centre or even as a potential profit centre."

Buy.com, an e-tailer of computer equipment and digital cameras, closed its Australian web site yesterday to concentrate on developing its base in the United States.

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