Legend-AOL joint venture likely to cut payroll
17/2/2003 16:01
The Internet company www.aollegend.com.cn. is likely to cut jobs,
according to employees of the websites.
A joint-venture dotcom company
launched by Legend Group, China's top information technology company, and
American Online, the U.S. media giant, Aollegend was founded in June 2001.
Legend holds a 51 percent share and AOL holds the remaining 49
percent.
FM365, a subsidiary website company of Legend, has been doing
the daily maintenance of Aollegend.
According to sources close to FM365,
nearly all senior employees are leaving Aollegend, and the company has suspended
development of new Internet products and services.
But Qu Lezhang, public
relations manager of Aollegend, denied the report, saying the recent departures
are routine personnel changes, and that the website is continuing to develop new
products and services.
The possible job cuts at Aollegend would indicate
a failure on the part of AOL to transfer its business mode, successful in the
U.S., to China, analysts pointed out.
It would also represent a tumble by
Legend in its expansion into the website industry, they added.
Last
July, Legend made a retreat from the dotcom sector, giving up its 40-percent
stake in the website company www.yestock.com, for which it paid US$35.37 million
two years before.
A month before that, Legend withdrew a 40 million yuan
investment in the dotcom company www.to124.com, reducing its stake from 50
percent to 10 percent.
In December 2000 Legend poured 50 million yuan
(US$6 million) into launching the dotcom with New Oriental
School.
Jane Chen / Shanghai Daily news
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