DM News: LookSmart Expects to Lay Off Half of Staff
Looksmart, the troubled search engine that lost its major account weeks ago when Microsoft dropped out as a distributor, will cut about half of its staff. It will also close its U.K. offices and renegotiate its leases over the next four months.
Microsoft had provided about two thirds of Looksmart's revenue, and that contract will now expire in mid-January. Contracts adding up to another six percent of Looksmart's revenue will expire in the next two or three months, and are unlikely to be renewed due to client acquisitions by competing search engines.
