In late August, we noted and concurred with the comments of Denise Garcia, a WR Hambrecht & Co. analyst who foresaw a bleak future for InfoSpace.
Garcia’s reasoning, that mobile-content intermediaries such as InfoSpace were caught between the rock of content providers and the hard place of search vendors such as Google and Yahoo, seemed essentially sound then and it seems more cogent today.
In fact, InfoSpace announced today that it will undergo a major restructuring. It also will part ways with Ed Belsheim, its chief administrative officer, who will leave the company on January 1, 2007. Belsheim also resigned from the board, effective yesterday.
As part of the restructuring, InfoSpace will cut 250 jobs and incur $13.5 million in pretax third-quarter charges. Before today’s announcement, InfoSpace had 620 employees.