Beijing, December 18, 2000 -
Leading Internet portal SOHU.com announced at its corporate headquarters today a
staff cut to eliminate overhead redundancies arising from its recent acquisition
of youth community web site ChinaRen.com and reduce general and administrative
costs.
Pooling the resources of the two Internet portals has already
achieved important and fundamental cost savings. According to Joe Chen, CEO of
ChinaRen.com: "When the two companies joined forces the Chinese Internet economy
witnessed the emergence of a new generation IT enterprise. Our combined assets,
shared bandwidth and better content management technology have cut redundant
expenditures. We have established a competitive advantage that will expand
market share and give consumers the best-of-breed Web based services."
Since the October 18 acquisition, SOHU.com has been working on the rapid
integration of technology, marketing, sales and administration and this will
continue over the first quarter of 2001. As part of the integration of the
ChinaRen.com and Sohu.com offices, 126 staff will be made redundant mainly from
the overlap in content and administrative areas. Total headcount will be reduced
by 20%, from 641 to 515 over the next 60 days.
"SOHU.com is here to stay. This profit-driven efficiency initiative is the
next step in the company's evolution. SOHU.com's structural consolidation makes
the company more productive and more responsive to the needs of the market. We
are now prepared to evaluate and exploit even more profitable business
opportunities at Internet speed", said Charles Zhang, president and CEO of
SOHU.com.
"Our goal of reaching profitability in 2003 remains a definite commitment to
the market and our investors", said Tom Gurnee, CFO of SOHU.com.
Also, Alan Li who joined SOHU.com as Chief Operating Officer in March 2000,
has announced he will take up life in academia to pursue a Ph.D. in early 2001.
"We are thankful for the positive contribution Alan has made to the internal
dynamics of the company and fully understand his decision to shift gears after
his impressive career of 25+ years", said Charles Zhang, president and CEO of
SOHU.com.
About SOHU.com
SOHU.com is the leading Internet portal in
Mainland China with current daily page views exceeding 12 million. It provides
navigation/search, news, sports, business and finance, real estate channel,
entertainment, chat, email and e-commerce activities for a solid and wide base
of visitors. Dr. Charles Zhang founded SOHU.com in 1997. Its investors include
Intel, Dow Jones, IDG, the Morningside China Group, PCCW, Legend and Hikari. Its
content partners include CNET, DOW Jones and dozens of local media organizations
in China.
For further information:
Dahlia Wei
SOHU Investor
Relations and Communications
Tel: +86 10 6272 6598
E-mail:
ir@sohu-inc.com
http://www.sohu.com/about/English/ |
