ASK JEEVES TO FIRE 180: Ask Jeeves Inc., whose Web site lets users search the Internet by asking written questions, said it will fire about 180 employees, or 25 percent of its work force, to reduce operating costs. The Emeryville, Calif., company also will take a pretax restructuring charge of $10-million to $12-million in the current quarter, Ask Jeeves executives said. Ask Jeeves is cutting costs and reorganizing to save $45-million next year and achieve an operating profit in the fourth quarter of 2001.

SOUTHWEST CUTTING COMMISSIONS: Southwest Airlines plans to reduce commissions paid to travel agents by up to 50 percent following similar moves by other large carriers last year. Starting Jan. 1, the Dallas low-fare carrier will cut commissions to 8 percent of the price of an electronic ticket and 5 percent for paper tickets. It estimates the move will save at least $40-million next year. Southwest had a five-year commitment to the American Society of Travel Agents to keep its 10 percent commission rate intact until year-end.

COMPAQ WARNS ON EARNINGS: Compaq Computer Corp. became the latest technology firm to warn of weaker revenues and earnings as demand for personal computers softens in a cooling economy. The world's biggest maker of PCs said profit from operations, excluding one-time charges, will be between 28 and 30 cents a share in its fourth quarter, about 8 cents below Wall Street expectations. Compaq said its outlook for 2001 remains positive, although it expects the second half of the year to be stronger than the first half. Apple Computer and Gateway previously said they would miss sales and earnings estimates.

KODAK WARNS AGAIN: For a second quarter, Eastman Kodak Co. lowered its earnings projections to reflect a sharp drop in film sales it blamed largely on a slowing economy. The world's biggest photography company said fourth-quarter earnings are likely to be 65 to 75 cents per share compared with a previous projection of $1 to $1.15. That would be down 40 to 50 percent from a year ago. CEO Dan Carp expects soft sales to persist through the first half of 2001, then improve. He said Kodak will reduce capital expenditures and tighten in other areas, including hiring. Investors appeared reassured by the cost-cutting plan. Kodak closed up $1.50 at $41.06.

LUCENT UP ON TAKEOVER TALK: Shares of Lucent Technologies Inc. surged $2 to $18.69 on speculation that Finland's Nokia Oyj will buy the world's largest maker of phone equipment. However, some analysts said such a transaction was unlikely. Nokia and Lucent declined to comment.

BIDS MADE FOR SEAGRAM'S: French entertainment giant Vivendi Universal says it has received two bids for Seagram's lucrative drinks business, which is to be sold after the two companies merge. Vivendi would not reveal the names of the bidders. The Canadian drinks and entertainment group's spirits and wine unit is expected to go for up to $8-billion.

GE-HONEYWELL FIGURES REVISED: General Electric says it will take $4-billion in pretax charges for the purchase of Honeywell International, and it raised its estimated annual savings from the acquisition by two-thirds to $2.5-billion. GE shares fell $2.50 to $52.81. Honeywell, meanwhile, said fourth-quarter profit would be below forecasts and it will take as much as $425-million in pretax charges in the period. That's in part from a decision to cancel the sale of some units after the $54-billion transaction was agreed upon. Honeywell lost $3.06 to $52.13.

ANOTHER DOT-COM TIGHTENS BELT: LocalBusiness.com, a Fort Lauderdale Internet company that provides news and information about businesses in major metropolitan areas across the country, has dismissed 34 of its 125 employees, including one in Tampa. The company, which expanded rapidly and is now suffering from the funding crunch facing dot-coms, also is temporarily closing four of its regional Web sites -- in Pittsburgh, Phoenix, Detroit and Kansas City -- and is pulling back its coverage of the health care and banking industries. John D'Onofrio, LocalBusiness.com's vice president for marketing, said the moves were designed to speed the company toward profitability.

Back to Business

Contact the Times | Privacy Policy
Standard of Accuracy | Terms, Conditions & Copyright

Special Links

Stocks

From the Times
Business report

Florida orange forecast declines

Risk of credit crunch materializes

Business digest

Oldsmar ambitions a dud for founder

From the AP
Business wire

From the state business wire

Judge denies dismissal of Citigroup shareholder suits

Carnival to buy 4 cruise ships from Italian builder