Internet incubator hatches job cuts

Idealab cuts a quarter of staff, but UK office safe, the Internet incubator with offices in London and California, is the latest to suffer from job cutbacks. The firm, which helped start m-commerce company Scan and community site PeopleLink in the UK, has cut 30 of 120 staff in Pasadena, California. The UK's 17 staff will keep their jobs, the company says.

Among idealab's ill-fated investments was eToys, the online retailer which shut down its UK operation this month after a disastrous US Christmas.

On Friday, EMusic, an online music distribution site, also announced job cuts, saying it will slash 36 percent of its workforce, or 66 jobs. The site laid the blame for the cuts on a combination of illegal online music distribution and slowing advertising sales.

The US-based site sells single tracks for 99 cents and entire albums for $8.99 (about £6).

See techTrader for the latest technology investment news, plus quotes and research.

Have your say instantly, and see what others have said. Click on the TalkBack button and go to the ZDNet News forum.

Let the editors know what you think in the Mailroom. And read other letters.