Internet company GigaMedia to start restructuring

GigaMedia Ltd (和信超媒體), Taiwan's only NASDAQ-listed Internet firm, will begin a wave of corporate restructuring following the economic slowdown of the past year.

In streamlining its organization, Gigamedia's board of directors has decided to lay off employees and has accepted the resignation of two company executives: Chief Financial Officer Chang Yi-chun (張逸群) and Vice Executive President Chris Tung (董本洪).

In a statement sent to employees yesterday, GigaMedia said Chang An-pin (張安平), president of Chia Hsin Cement Corp (嘉新水泥), will become GigaMedia's new president.

Chang has been tapped to help bail out the firm from financial trouble, although the company doesn't expect to break even on its initial investment until 2002.

A Chinese-language Web site reported yesterday that GigaMedia's board had decided to ax some 150 workers and remove itself from the NASDAQ, but the company said said later in the day that the report was untrue.

"We will lay people off ... but the number [reported by the media] is inaccurate," said Serina Chung (鍾壁光), GigaMedia's marketing department supervisor.

Chung said the company is scheduled to make a formal announcement of its plans at 4pm today.

GigaMedia shares, which were offered at US$27 during their initial public offering, quickly surged to a high point of US$91.

Wednesday the shares closed at US$2.31.