AltaVista has laid off 25 per cent of its 900-strong workforce – a total of 225 people.

AltaVista said it will quit the Internet-portal business, in order to focus its efforts on its search-engine operations, AltaVista said.

Profits AltaVista also plans to move its operations to its California headquarters. With layoffs and the restructuring, AltaVista expects its North American operations will be profitable by January 31, 2001.

Rod Schrock, AltaVista’s president and CEO, said: "While many of these business decisions have been difficult, we are now in a position to unleash our search expertise with a clear, singular focus."

AltaVista will launch new businesses, including a third-generation search service that incorporates users' information. It also plans to launch a marketing-services organization. It expects to expand its global presence from seven countries to more than 35 by the end of this fiscal year.