Media tycoon Jimmy Lai Chee-ying shut almost all the Internet operations of his Next Media empire yesterday in one of the most drastic dotcom cutbacks since the 'new economy' bubble burst in the spring.
Around 100 atnext.com staff arriving for work at their Tseung Kwan O office yesterday were told that, for reasons of 'business reorganisation', they were being laid off.
Next Media's news, finance, entertainment, soccer and lifestyle Web sites were closed. Only its horse-racing Web site survived the axe, along with around 20 production, information technology and editorial staff. It will continue to put online the contents of Apple Daily, Next magazine and Mr Lai's other publications.
It is the second wave of job cuts in the past three months at Next Media. In July, 98 jobs were lost from appledaily.com and nextmedia.com, which were then renamed atnext.com.
Analysts said the closure was a setback for the firm. 'As the company substantially scales down its Internet business, it appears to be turning from a new economy stock back to an ordinary media counter,' said Vickers Ballas analyst Tommy Ho Kin-tak, adding that in the long term the move would hit the firm's stock price.
Next Media, the listed arm of Mr Lai's media empire, has seen its share price plunge more than 90 per cent from its peak of $5.40 a share in March. It edged up two cents to close at 39 cents yesterday.