CyberWorks to Unveil Delayed Web Strategy Wednesday (Update1)
By Cathy Chan
Hong Kong, July 3 (Bloomberg) -- Pacific Century CyberWorks Ltd., the city's dominant phone company, will announce its Web service strategy tomorrow, after an earlier postponement, amid speculation it will cut more Internet operations staff.
CyberWorks, controlled by Richard Li, son of Hong Kong billionaire Li Ka-shing, will hold a press conference Wednesday at 5 p.m. and brief financial analysts on the new plan simultaneously, the company said in a press invitation. It postponed announcing its strategy in June.
The company is expected to scale down unprofitable Internet operations and lay off staff to cut costs. CyberWorks lost $886 million last year, mainly because of losses by its business-to- consumer Internet services.
Last month it canceled free e-mail and Web hosting on its Taiwan Netvigator site, sacking more than two-thirds of its 20 staff on the island. The Oriental Daily news reported yesterday, citing unidentified people, that CyberWorks will also cut 200 Netvigator staff in Hong Kong.
CyberWorks managers will meet staff representatives tomorrow at 10 a.m. to brief them on the company's Internet strategy, according to an invitation from the employee relations and communications department.
The company declined to comment on speculation about layoffs, though Chairman Li earlier refused to guarantee there wouldn't job cuts this year.
CyberWorks could cut as many as 1,500 employees, BNP Paribas Peregrine Securities Ltd. said in a reserach report.
Including its half-owned venture with Telstra Corp. and regional mobile units, CyberWorks employed 15,000 people as at the end of last year.
Although CyberWorks has already cut this year's budget for Internet services, including multimedia broadband portal Network of the World, investors want it to trim further.
``If CyberWorks doesn't water down Web-related investments, investors will be displeased,'' said Billy Chan, who manages more than $4 billion in Asia ex-Japan for Invesco Asia Ltd.
CyberWorks shares rose 1.1 percent to HK$2.25. |
