New cuts at FT website

By SARAH BRIDGE FOR THE MAIL ON SUNDAY
Updated:

 

MORE CUTS are expected at the Financial Times' internet operations - on top of the loss of 40 jobs announced this month.

The FT, owned by Pearson, is desperately trying to claw back some of the money it has sunk into online activities under the leadership of chief executive Marjorie Scardino.

Last year, Pearson spent about £196m on its internet business, compared with £39m the previous year. Revenues were only £45m.

As well as FT.com, the newspaper's online version, Pearson runs an array of stand-alone websites with a staff of 350, including FTYour-Money.com, FTMarket-Watch, the online Investors Chronicle, and trade titles such as Financial Adviser.

However, despite its spending power and the strength of the FT brand, Pearson has proved to be as susceptible to the dotcom downturn as the newest media start-up.

The FT online services have succeeded in attracting users sitting at their desks at work. But the operation has failed to make the hoped-for inroads into the mass consumer market.

The FTYourMoney.com finance site was over-taken this year as the most popular financial website for home users by Thisismoney.co.uk, sister website to Financial Mail.

An FT insider told Financial Mail: 'It was a classic case of nobody deciding what they wanted to do, whether they wanted to sell information or become financial advisers.'

Pearson was forced to slash its budget after the online advertising market collapsed last year. Staffing on FTYour Money.com has been dramatically cut, and it has effectively been combined with the main FT.com operation.

Industry insiders say that some staff on the Investors Chronicle site will also go, with content being provided by its magazine staff.

Stephen Hill, chief executive of the FT Group, said: 'The economic climate has highlighted the need to continue this process.'

But Pearson does not expect the sites to break even until the end of 2002.

The share price closed on Thursday at 1277p, a fall of 29% on this time last year.

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