TheGlobe.com Eliminates 30% Of Its Workforce

Posted on April 11, 2001

Theglobe.com, a network of game websites and online communities, announced additional aggressive cost-reduction initiatives. These initiatives include eliminating 59 positions, or 31% of the Company's workforce, as well as reductions in discretionary spending and contracted services. There have been no reductions in the Company's nationwide sales force. The Company expects these cost-reduction initiatives to save over $8 million on an annualized basis.

``These decisions have been extremely difficult, impacting talented people on our staff, although we are maintaining key personnel to support our customers and users. These changes were necessitated by the current challenges in the business environment,'' commented Chuck Peck, Chief Executive Officer, theglobe.com. ``Throughout the decision-making process, however, our objective has remained clear--to conserve theglobe.com's capital resources, positioning the Company to survive the current market downturn and ultimately achieve profitability.''

theglobe.com will continue to invest in its core asset, its games information properties, including an offline games publication, Computer Games magazine.

``With seven highly targeted games properties, we provide a 'one-stop media outlet' for advertisers,'' said Peck. ``We have strategically positioned our games properties to capitalize on the explosive growth in the games industry--estimated by CMP Game Media Group to be a $9 billion industry and the fastest-growing segment of the entertainment market.''

theglobe.com is a network of gaming and community oriented properties. theglobe.com network delivers community through: (1) a games information network, which consists of HappyPuppy.com, KidsDomain.com, Computer Games Online (cdmag.com), Chips & Bits (chipsbits.com), GamesDomain.com, ConsoleDomain.com, and the offline property Computer Games magazine; (2) its flagship website, theglobe.com, which features the Company's community tools; (3) distributing community tools and services and/or games information content to other Web properties; and (4) providing web hosting services to the small business sector.