Razorfish, the internet consultancy that briefly became one of the new-economy stars in New York, is to cut more jobs just weeks after shedding 20% of its staff worldwide.

The company, which was founded in 1995 and has 11 offices and 1,600 employees around the world, offered workers in its London, Boston and San Francisco offices voluntary redundancy at the end of last week. Staff have until today to decide whether to accept the terms.

The company refused to say exactly how many people would lose jobs, but a spokesman said more than 20% of the 160 staff in the London office are likely to be cut.

The job losses will include creative staff, strategists, technicians and back-office workers, and will be finalised at the beginning of next week. Many will stem from the merger of management and back-office functions at the London and Amsterdam offices.

The firm, which focuses on interactive TV, the internet and mobile technology, has seen its market value collapse from$4.6bn last February to less than $100m.

There are no plans for office closures and the company, which had been reported to be seeking additional funding, yesterday said it hoped it would not need to raise more money to remain afloat.

"The aim of this cost efficiency is so that we won't need more funding",the spokesman said.

It is Razorfish's third round of job cuts since October.