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Jupiter, VerticalNet cut jobs
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April 26, 2001: 6:01 p.m. ET
Jupiter Media Metrix slashes 18 percent of staff, VerticalNet to cut 25 percent
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NEW YORK (CNNfn) - Jupiter Media Metrix said Thursday it would cut jobs to lead the company to profitability while VerticalNet Inc. announced that it would slash a quarter of its full-time staff.
Jupiter Media Metrix (JMXI: down $0.29 to $2.00, Research, Estimates) said it plans to reduce its global work force by approximately 18 percent over the next few weeks amid the softening economy and a decline in its dot.com client base.
"While these staff reductions are difficult, we feel they are necessary as we concentrate our resources on our core strengths and lead the company to profitability," said Tod Johnson, chairman and CEO of Jupiter Media Metrix.
The Internet research company also reported a first-quarter loss, excluding charges and amortization, of $10.8 million, or 30 cents a share, from a pro forma loss of $1.7 million or 5 cents a share, a year ago. Wall Street had expected a loss of 29 cents to 31 cents a share.
VerticalNet said a job reduction would result from the company's latest restructuring. The electronic commerce software vendor said it plans to reduce approximately 25 percent of its full-time work force.
"The current economic environment requires a 'back to basics' approach with a renewed focus on the core elements that will take us closer to our growth and profitability goals," said VerticalNet's President and CEO Mike Hagan.
The e-business vendor posted a cash loss of $28.2 million, or 30 cents a share for its second quarter, compared with a loss of $13.6 million, or 18 cents a share, a year earlier. Wall Street had expected a loss of 25 cents, according to First Call.
Horsham, Penn.-based VerticalNet (VERT: down $0.04 to $1.98, Research, Estimates) also announced earlier that it has formed a strategic partnership with Microsoft, in which Microsoft will fund $40 million to VerticalNet to create a more advance technology of enablement solutions. 
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