Just days after end-of-year results revealed another year of heavy losses and revenues failing to hit targets, Quokka, for years widely regarded among the most visionary and pioneering of dot com enterprises, admitted it would have to slash jobs in order to survive.
The Nasdaq-listed firm which lost $75.9m pre-tax in 2000 and who is expecting further losses through 2001, said it would now focus its core business on live sport event coverage.
Staff were told of the job losses at Quokka?s San Francisco offices on Monday night with many leaving the company immediately. Others will leave over the next two months. By the end of the cutbacks, Quokka will be left with just under 100 employees.
A company insider said the job losses were across the board from editorial, production, technical and marketing and sales departments.
The company said that its restructuring would involve `diversifying our business model beyond sponsorship and content syndication?.
Quokka, which recently launched the official 2002 Salt Lake City winter Olympics website, said the job cutbacks would take its monthly out-goings to below $2 million. However the internet portal will be forced to pay out about $1 million in severance charges.
Quokka said that it planned to expand into live event production for rights holders and media companies on a fee basis, a move it believes could enable it to capture business from new budgets which carry less financial risk.
Quokka?s share price has plummeted to just 19 cents compared to a range of between $9 and $20, the price offered to US broadcaster NBC when Quokka struck a deal to host the official Sydney 2000 Olympic website.
Quokka is involved in several sports including US motorsport series Cart, yachting?s BT Global Challenge and Volvo Ocean Race, and NCAA, the popular US college basketball competition.
A Quokka insider told sportbusiness.com
