AltaVista chief resigns in new setback

AltaVista chief executive Rod Schrock resigned on Thursday, dealing another blow to the troubled internet search engine pioneer.

The one-time giant of the search world has had nothing but trouble this year. Earlier this year in the UK its managing director Andy Mitchell resigned over the company's failure to meet its promise of a free internet access service.

Last month AltaVista admitted defeat to Yahoo and AOL in the portal wars and said it was to return to its search roots.

Schrock said: "I have been doing this for 15 years. I think I deserve a break." He said he resigned voluntarily to spend more time with his family, which includes two children. His departure becomes effective immediately.

Schrock, a former executive at Compaq Computer which acquired AltaVista when it took over Digital Equipment, joined AltaVista in January 1999. He stayed on when CMGI acquired AltaVista in June 1999 for $2.3bn.

CMGI, AltaVista's majority owner, applauded Schrock's work. "Rod has successfully presided over unprecedented growth for AltaVista and accelerated a plan for near-term profitability," said CMGI chief executive David Wetherell.

Schrock's resignation comes a month after the company laid off 225 employees, about one-fourth its workforce, in an effort to accelerate its path to profitability. AltaVista also delayed its initial public offering in April after the market for internet stocks took a nosedive.

While AltaVista searches for a new chief executive, two of its current executives, Greg Memo, AltaVista's chief operating officer, and Ken Barber, its chief financial officer, will share the responsibilities.