IAsiaWorks cuts staff by 25pc to focus on regional markets

Internet connectivity provider iAsiaWorks will cut 25 per cent of its staff - mainly in Hong Kong and the United States - as the company aims to boost efficiency in the latest round of restructuring in the online world.

The move comes less than two months after the Silicon Valley-based company launched a 98,000-square feet Internet data centre in Hong Kong and a 140,000-sq ft facility in Taipei.

The cuts follow the recent sale of an operation in Australia and staff reductions in China, Japan and Singapore.

The company, which provides services in Asia and the US, said yesterday it would sack 100 people, or a quarter of its staff.

The company operates Internet data centres in Hong Kong, South Korea and Taiwan, and offers network infrastructure hosting services in 10 Asia-Pacific countries and the US through partners.

The company expected the restructuring to result in a charge of US$6 million to US$8 million, the majority of it non-cash expenses.

As part of the restructuring, Jon Beizer, chief financial officer and president of the company's US operation, will also become chief executive of the overall organisation.