AltaVista Names CEO, Cuts One-Third of Staff

Search engine vendor AltaVista has named James Barnett as its new chief executive, and says it is laying off 160 employees, or about a third of its workforce. After the cuts, AltaVista will employ approximately 340 people.

David Emanuel, an AltaVista spokeperson, says Barnett is replacing Rod Schrock, who stepped down in October for personal reasons. Since that time, AltaVista has been run by acting CEO Peter Mills, who came over from @Ventures Investments, CMGI's venture capital arm, when Schrock resigned. AltaVista is owned by Internet investment company CMGI.

In its statement, AltaVista says the layoffs are part of its plans to transform its U.S. shopping-comparison service into search functionality on its Web site, AltaVista.com, and to consolidate and centralize general administrative and finance functions.

"AltaVista is a leading global Internet service and enterprise search software company with outstanding technology, a great brand, and rich history of search innovation," Barnett says. "CMGI has expressed its continued confidence in AltaVista with a significant commitment to its worldwide businesses. From this strong base, I am eager to advance AltaVista's growth and continued revenue diversification."

Shifting Focus

AltaVista, which provides search capabilities to consumers worldwide, recently launched its AltaVista Enterprise Search application, designed to give workers access to a wider array of data within their companies.

AltaVista dropped Web portal operations in February, as part of a strategy announced last year to reach profitability this year.

Phil Benyola, an analyst at Raymond James & Associates, says AltaVista has been looking for a new CEO for about a year.

"Every time a company brings in someone new, [you can] expect some restructuring," Benyola says.

Benyola also says AltaVista was forced to lay off workers because its enterprise search application didn't generate as much revenue as expected. But Emanuel says that isn't the case.

"We have a clear focus and a strong commitment and confidence in our dual strategies--our Internet search and our users, and our search software for corporate enterprises," Emanuel says. "We have resources and staff dedicated [to both]."