Los Angeles – IAC/InterActiveCorp.’s (NASD: IACI) search engine
unit is laying off 130 employees, mostly engineers who had been working on the
company’s search engine — operation of which has now farmed off to
third parties, Bloomberg reported. said it will cease development on
algorithmic web search; recent market research found the company claims less
than 2% of the total U.S. search market.

"This investment in independent
web search is not required by our strategy, nor is it required in the
marketplace," president Doug Leeds wrote in a post on the
company’s blog.

"We have access to multiple third party structured and
unstructured data feeds that, when integrated, can provide a web search
experience on par with what we are able to produce internally, at much lower
costs." T

he company will now focus squarely on its questions-and-answers
Web service.


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