Chinese Internet video website Ku6.com has announced that to simplify operations, control costs, and improve efficiency, the company has decided to restructure its sales department.
Ku6.com said that it will cut about 20% staff in this restructuring and all of them are employees working for the sales department. The company plans to complete the restructuring within two weeks.
According to local media reports, the company will maintain a smaller but more efficient sales team after the restructuring, and it will take various measures to increase its sales performance. These measures include outsourcing its sales of advertising to third-party advertising companies and exploring more effective sales channels.
Ku6.com predicted that the costs for this non-recurring restructuring will be calculated in the second quarter and it will bring negative effect to its revenue in the second and third quarter of 2011.
However, the company said that it will realize reduction of costs by the restructuring and it will increase long-term value for shareholders.
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