AltaVista Cuts Jobs, Adds New CEO

Baldwin Louie — Tue, 18 Sep 2001 15:00:00 -0700

Internet search firm AltaVista announced it has hired a new chief executive officer and has cut its staff by about a third.

James Barnett, formerly the CEO of genealogical-information site MyFamily.com, has joined AltaVista as chief executive, the company said. AltaVista is owned in majority by investment firm CMGI, which is also an investor in MyFamily.com.

"Jim has terrific experience with an impressive track record leading
companies and helping them optimize for success," said David
Wetherell, chairman and chief executive officer of CMGI, in a
statement.

AltaVista, which has operated without a CEO since Rod Schrock left
the post last October, slashed 160 jobs, or 32% of its staff, in an attempt to cut costs in this deteriorating advertising market. As a part of this restructuring, the company will shut down its comparison shopping service and close its Irvine, CA office. After the cuts, the company's headcount is 340.

Like many Internet media companies, AltaVista has experienced a
roller coaster ride during recent years. The company has increased
its focus on sales of its search engine technology to third parties
since its attempt to become a full-fledged web portal proved too
challenging in the wake of the dot com implosion.

But even in the market for business search technology sales, AltaVista is currently facing increased competition from newcomers like Google. In January, the company shelved plans for an IPO, choosing instead to lean on CMGI for more support.

"CMGI has expressed its continued confidence in AltaVista with a
significant commitment to its worldwide businesses," Barnett said in
a statement. "From this strong base, I am eager to advance
AltaVista's growth and continued revenue diversification.''

In morning trading on Tuesday, CMGI shares rose 20 cents, or 17.7
percent, to $1.33.

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AltaVista Cuts Jobs, Adds New CEO