Troubles in the diminishing dotcom sector in Hong Kong continue as investors become weary of Internet-related investments, pulling out funds and cutting the lifeline of many Internet start-ups. Recent lay-offs at interactive media design house Lemon Asia, Tom.com and Asiacontent.com as well as the closure of Web traffic measurement firm Iamasia, broadband ad network AdSociety and Internet consultancy Mercatela have resulted in about 300 jobs lost altogether. Internet auction site Red-dots.com, a Sunevision Holdings company, is the latest victim of the shrinking dotcom sector. On Saturday, the GEM-listed technology arm of Sun Hung Kai Properties, Sunevision Holdings, announced a restructuring which included significant reduction of staff at Red-dots and winding up its Super-Office service. To further reduce costs, the company has shifted all its headquarters operations in Wan Chai to the 350,000 sq feet mega-iAdvantage centre in Chai Wan. According to Wence Wong, spokesman at Sunevision, 'fewer than 50 were affected by the restructuring'. The online auctioneer, which does not charge listing fees and commissions - unlike US-based Internet auction giants eBay and Yahoo!, depends mainly on revenues from listing and banner advertisements. About 20 are left at Red-dots. At an Internet gathering organised by Gorilla Asia in July, Grace Lo, director of strategy and product development at Red-dots and also one of company's three founders, had told the audience that the company's strategy was to try to outlive competitors 'and then walk to the finish line'. She had also said that generating revenue was a 'question we think about every day'. 'The cost-cutting is a good decision,' said an analyst who preferred not to be named. 'Sunevision should just focus on the Internet infrastructure part of the business which is already 90 per cent of its revenues. I really don't see a revenue model for the consumer Internet services such as SuperHome, Red-dots and SuperStreet.' According to Ms Wong, the SuperHome.net portal provides Sun Hung Kai estates with online services such as newspaper delivery to the door, ordering of school text books and advice on buying property. The defunct SuperOffice.net was an application service provider started last year at the height of the dotcom fever with a staff of 60 and HK$100 million in capital investment. The company had hoped to help small and medium businesses in Hong Kong transform their traditional way of doing business to trading in online marketplaces. At a signing ceremony in April last year, a very bullish Sunevision chairman Raymond Kwok had said that SuperOffice was expecting to 'enlist at least 1,000 industry members as customers in the first year after launch and that the volume of material traded through the site will reach HK$25 billion'. With no meaningful revenue in sight, Sunevision's decision to pull the plug on SuperOffice, reduce staff at Red-dots and relocate to cheaper premises would result in about HK$35 million in savings annually, according to a company press release. Ms Wong would not say whether further cuts were planned. Last week, Lemon Asia sacked half its staff despite having inherited some new customers including British Airways from Mercatela, which went out of business in September. Chief executive Neil Runcieman said: 'We need to reduce costs during a period when there is not only very little work left in the marketplace, but also no expectation of a turnaround in the short term.' Some of Lemon Asia's customers also included dotcoms that have gone out of business such as AdSociety. Mr Runcieman said many customers had either dramatically slashed their marketing budgets or had nothing to spend. 'There will be more consolidation to come. We really don't expect a turnaround in the short term,' he said.