US internet search company AltaVista said today that it would lay off 200 employees, or about a quarter of its staff, in reaction to a persistently weak online advertising market.
This is the third round of job cuts at the company in two years. In September, AltaVista laid off 225 employees after cutting 40 jobs earlier in the year.
"AltaVista has not been immune to the softness in advertising," Peter Mills, an executive adviser to the company said in a statement.
Most of the job losses will happen at company headquarters in Palo Alto, California, with few employees in Europe affected. The move leaves AltaVista with approximately 600 employees worldwide.
Despite the popularity of its internet search engine, AltaVista has been dogged by trouble over the last year. Last week, the company pulled its IPO plans for the third time, and the former chief executive, Rod Schrock, left the company in October, saying it had suffered from neglect and under-investment.
AltaVista, majority owned by Internet development company CMGI Inc - is increasingly focusing on its search software business - which licenses its technology to other companies.
But the company said that the consumer search business remains a core part of its operation.
Earlier this week, AltaVista UK was in court defending itself against a £215m breach-of-contract claim still pending from its abandoned plans to provide an unmetered internet access service last summer.
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