BELLEVUE, Wash.-InfoSpace Inc. said it plans to lay off about 250 employees as part of a restructuring plan.
The move follows news late last month that Cingular Wireless L.L.C. plans to develop direct licensing relationships with major record labels next year, instead of using InfoSpace for its ringtone services. Cingular is InfoSpace’s largest ringtone customer.
InfoSpace said it expects to record a pre-tax restructuring charge in the third quarter of about $6.5 million for severance costs and an additional $6 million to $7 million in other charges such as facilities and costs to terminate certain agreements. The company said the charges include the previously disclosed closure of its Hamburg, Germany, facility.
InfoSpace also announced Ed Belsheim, chief administrative officer of the company, is leaving the company as part of the restructuring.
