&c1=usa&c2=(none)&c3=The+Guardian&c4=Financial+Times,Press+and+publishing,Digital+media,Media+business,Business,Media,Technology&c5=&c6=David+Teather&c7=2001_04_06){kind=small}
- guardian.co.uk, Friday April 6 2001 10.58 BST
The Financial Times group yesterday announced plans for a 10% reduction in its online workforce as it struggles to make its internet business reach break even by the end of next year.
The 40 job losses are largely among back office staff including marketing and product development. There will be eight editorial job losses at FT Yourmoney, which will be merged with the personal finance operation of the Financial Times newspaper.
The group employs 350 online staff on websites including the flagship FT.com, FT Careerpoint, Economist.com and FT Marketwatch. Another, less quantifiable number work across print and online operations.
An internal memo from Stephen Hill, chief executive of the FT Group, said the economic climate highlighted the need to continue cutting costs by integrating the newspaper and online operations.
Consultation with staff will take place over the next month.
"Since August last year we have been carefully integrating our internet editorial and advertisement sales operations with those of the newspaper. And we have seen how we have become more efficient by doing so," the memo read.
Mr Hill said the company was still confident that FT.com would break even by the end of 2002. The memo said the company would also benefit from reduction in marketing and technology costs related to start-up of the online businesses.
Pearson, which owns the FT, recently said it invested £113m in the newspaper group's internet operations last year. The wider group invested £196m, with the remainder accounted for by Pearson's online education business.
FT.com achieved revenue of £18m last year, the majority of which was generated by advertising. The company expects licensing of content and new premium services such as FT mobile and FT Careerpoint to account for half of revenues by the end of next year.
FT.com attracts some 2m unique monthly users, up by 50% on this time last year.
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