40 Jobs To Be Cut At Online FT

Pearson is to cut around 40 jobs from its online division, which includes FT.com, in order to steer its businesses towards profitability by the end of 2002.

The job losses will occur across the FT internet businesses, including FT.com, FT Careerpoint and FT Your Money. The reduction in staff is said to result from the integration of the editorial and advertising functions of the online and print versions of the FT, but earlier this year Pearson announced it planned to halve its spending on internet activity (see Pearson Halves Net Spend As Investors Call For Closure Of FT.com) after a 17% year on year drop in profits.

FT.com attracts around 2m monthly users, is currently subscription-free and is expected to break even by the end of 2002, despite recent concerns that the advertising model cannot sustain profitability on the web. The roll-out of premium services and licensing of FT.com content should mean that by 2002 only half of its online revenues will be derived from advertising. Earlier this week, rival Dow Jones confirmed that staff cuts were to be made at WSJ.com, despite the fact that that site makes money via subscription revenues.

Following the announcement of the job cuts yesterday, Pearson shares rose 15p to £11.97. By 10.05am today, the price had risen a further 30p to £12.27.

Pearson: 020 7411 2000 www.pearson.com

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