EMAP to pull plug on web jobs

By NICK GOODWAY FOR MAILONLINE
Updated:

 

PUBLISHER EMAP is to halve its digital spending and cut jobs in its internet publishing operations. The group also confirmed that it had received several bids for its US business, which it will probably have to sell at a loss.

Analysts say that about 80 of the 500 jobs in digital publishing will go. Chief executive Kevin Hand said: 'Because the online and offline publications sit side by side, literally in many cases, we hope that a good number of the people whose posts are affected will be able to come across to the hard copy publications.'

Announcing a halving in digital investment from £50m this year to £25m in 2001-02, Hand said: 'There is no question that the digital world has deteriorated sharply in the last six months. There is a real crisis of confidence and advertisers are hesitant. We are not abandoning the digital world, it is here to stay, but we thought we should cut investment ahead of the pack.'

The cutbacks will cost £10m, which will be taken as an exceptional charge. That apart, Emap confirmed that trading was in line with analysts' expectations.

News that there had been several approaches for the US business pushed up some analysts' forecasts of what it might fetch from £400m towards £500m. The group paid £720m for the business in 1999.

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