CNET (NSDQ: CNET), under pressure from an activist investor group, says it is laying off 120 employees, or 4.4 percent of its 2700-strong year-end headcount, in a "workforce realignment". In a just-filed 8-K, the company says the reduction is part of a plan to more appropriately allocate resources around key strategic initiatives. The layoffs, which will result in up to $4 million severance pay and up to $0.4 in other costs, are effective immediately.
The filing enumerates five specific areas it wants to work on: "(i) realigning and streamlining G&A and other central services; (ii) evolving the Company's editorial organization to enable greater focus on content creation; (iii) innovating the Company's technology infrastructure, including the adoption of open application programming interfaces, or APIs, and implementing other measures to enhance greater efficiencies; (iv) simplifying the Company's sales approach to enhance sales productivity; and (v) implementing business unit changes to realign resources to support the Company's strategic priorities and promote efficiencies."
More to come
By Joseph Weisenthal