|After an online ad slump, New York-based chat and gaming site theglobe.com has decided to shut most of its web business and reduce its staff by half. The company said its plans to simultaneously close its community site theglobe.com and its web hosting business webjump.com on August 15.|
It has placed its UK-based Games Domain, as well as Happy Puppy, Kids Domain, and Chips & Bits sites up for sale. Another 60 jobs, 49 per cent of its remaining workforce, will also be let go. Plans to move its headquarters for smaller offices will take place in mid-August.
According to theglobe.com CEO Chuck Peck, the company had faith in the future of online advertising, but it is simply not in a position to stay in business in the long-term. He blames the current spending slump to ‘a temporary pause in market’s overall growth’.