Ten percent of its staff gets slashed in a restructuring to help it focus on long-term growth amid complaints from some investors.
NEW YORK (Reuters) - Online media company CNET Networks Inc 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 pre-tax 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.
(Reporting by Paul Thomasch; Editing by Andre Grenon)
© Reuters 2007. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.
