Cuts in jobs, services to make Hoga.pl profitable by 2003

Internet portal Hoga.pl has announced plans to close down part of its operations and reduce its workforce by more than a half. Speaking at a news conference yesterday, Hoga.pl president Tomasz Kosobucki said, "We will carry on with the services that are capable of self-financing." Currently the portal offers 61 services, just nine of which are profitable. However, Kosobucki says the number will increase by the end of this month. Last year Hoga.pl employed 126 people, but under an on-going job-cutting program the number will be reduced to 52 in April. The company forecasts that in 2002 revenues from sales will reach zl.6.2 million, down from zl.6.9 million last year. "The company will be profitable by the beginning of 2003," Kosobucki told reporters. The improvement in the company's financial performance is the result of deep changes, which have gradually been introduced since June last year and which will come fully into effect from April 1. Hoga.pl's strategy also envisages its transformation from a media into an IT company. This year 71% of revenues are expected to be generated by sales of programming equipment, 11% from advertising and as much as 8% from the sale of IT products. (Prawo i Gospodarka, p. 6) A.Z.