May 12, 2003 : Overture Cuts 100 Jobs at Altavista

📅 May 12, 2003 - Paid search firm Overture Services, Inc. (overture.com) said last week at its 2003 meeting with financial analysts that it would eliminate 100 jobs as a result of its acquisition of AltaVista.

The company said it expected the cuts, which will occur in areas such as sales and finance, to yield approximately $7 million in annual savings. Overture said it remains focused on its growth initiatives and anticipates healthy earnings growth.
The company reported solid progress in the integration of its acquisitions - AltaVista and the Web search unit of FAST, continued development of an integrated product and technology platform for Web search, enhancements to its core paid search service, the development of a full-suite of search products for syndication to advertisers and distribution partners, and expansion of its international business.
As part of its report, Overture also reiterated its expectation that earnings per share will double from 2003 to 2004. The company said it expects 2004 to be a strong year as current investments in the business begin to pay off.
"The investments we're making in the business strongly position Overture for earnings growth in 2004, and target the enormous market opportunity in commercial search," said Ted Meisel, president and chief executive officer of Overture. "Our recent acquisitions will enable us to diversify our revenue and profits as we seek to leapfrog the competition by building the next generation of Internet search."
Meisel told analysts that the company believes that Internet search and related services, including Pay-For-Performance, paid inclusion and contextual advertising, could grow to as much as $15 billion worldwide by 2008.
Overture is based in Pasadena, California.