GlobalNet Financial, owner of UK-iNvest.com, yesterday added to the gloom surrounding financial news websites by announcing that it was shedding 35% of its media staff and preparing to move out of its offices in London's West End.

About 50 jobs, mostly those of journalists, are to go from GlobalNet's international offices in Europe and the US, resulting in an immediate saving of around $3m, chief operating officer Ron Goldie said.

A further $2m in savings will be found by moving from offices near Piccadilly Circus. "They're very expensive and we're looking for somewhere cheaper," Mr Goldie admitted.

The savings are added to $12m of costs taken out of the business by a strategic review in January. The review divided GlobalNet's assets into three divisions: brokerage operations; media; and business-to-business transactional services.

It is thought to be looking to drive consolidation of financial news websites, many of which appear frail following the slowdown in advertising spend and a reduction in share trading volumes.

GlobalNet's merger talks with Interactive Investor International appear to have been put on hold. It is now thought to be in talks with another privately owned website.