Economic Landscape Marred by Layoffs

N E W   Y O R K, Jan. 5 -- News Corp., the media empire controlled by Rupert Murdoch, is shutting down its online division and eliminating more than 200 jobs in an effort to conserve badly needed cash.

The announcement was one of several in recent days by companies that the New Year would involve mass layoffs, and cutbacks in an effort to reduce costs.

Sears Roebuck,

eToys

and

Bausch & Lombhave all released statements announcing there would be changes. In some cases, thousands of employees will be affected.

And on Dec. 28, retailer Montgomery Ward, a sturdy American institution announced it was closing its doors after 128 years of business.

News Corp. said in a statement released released late Thursday that itwould transfer the production of three major Web sites back to thenetworks they are associated with —

Fox Broadcasting Company,FoxSports Television Group, and Fox News Channel.

In so doing, about half of the 450 jobs in the digital division,News Digital Media, will be lost through attrition and layoffs overthe next six months, according to company spokesman Andrew Butcher.The remaining jobs will be moved back to the networks.

Butcher said the move would save the company “tens ofmillions” of dollars, but he declined to be more specific.

News Digital Media was formed in 1997 with the ambitious goal ofproviding fresh editorial content for the online components of NewsCorp.’s broadcast outlets, FoxNews.com, FoxSports.com and Fox.com.

Disappointing Earnings Spur Changes

Bausch & Lomb Inc. also said it would be cutting back its workforce.

The world’s largest eye-care company, which employs about 12,000people, said demand for laser eye surgery has dipped recently “intandem with the deceleration in the overall U.S. economy.”

It said it would be cutting 350 jobs,or 2.9 percent of its work force, on top of 450 cuts disclosed justthree months ago, citing a slowdown in sales of laservision-correction machines.