CNET to Restructure, Cut 10 Percent of Workforce
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Online media company CNET Networks (NASDAQ: CNET) said on Wednesday it will eliminate 120 jobs, or about 10 percent of its staff, in a restructuring to help it focus on long-term growth amid complaints from some investors.
CNET expected pretax restructuring charges from the job cuts to run between $3.5 million and $4 million, most of which will be taken in the first quarter of 2008.
The job cuts are effective immediately.
The moves come after hedge fund Jana Partners LLC won a key court ruling earlier this month that could help it take control of CNET's board.
Jana Partners, which holds about 10 percent of CNET's voting stock, is leading a group of investors that wants to "revitalize" the company and boost its share price.
CNET has said it will appeal the March 13 ruling by the Delaware Supreme Court that allowed Jana Partners and the rest of the group to nominate additional directors to the media company's board.
CNET shares rose 6 cents to close at $7.25 in NASDAQ trading on Wednesday.