Online directory and mobile content provider InfoSpace is reorganizing its business and will lay off some 250 workers.

InfoSpace's restructuring, mainly of its mobile content business, will result in the phasing out of the jobs starting this week and going into next year, reports ClickZ. Last month, InfoSpace's largest ringtone distributor, Cingular, was reported to have decided to cut out InfoSpace as the middleman and begin entering licensing agreements directly with record labels.

The mobile content biz accounts for half of the company's revenue, and ringtones constitute the major revenue source for that business. Its other businesses are mobile infrastructure and search, including pay-per-call ads from Jambo.

InfoSpace's chief administrative officer, Ed Belsheim, will leave the company on January 1, and has already resigned from the board.