HotJobs Rises on News Corp. Alliance

Hot Jobs, based in New York City, said that its software will power the new business, which will be run by News Corp.'s CareerOne online recruitment unit. HotJobs will develop, host and maintain the Web site, and CareerOne will handle advertising, sales and customer service.

Terms of the agreement were not disclosed.

Lachlan Murdoch, News Corp.'s deputy chief operating officer, said that the alliance will create "one of the largest online job and resume databases in Australia."

Added Dimitri Boylan, HotJobs' acting president and chief executive officer: "Both applicants and recruiters will benefit from the broader audience reach as well as the editorial content offered by News Corp.'s family of newspapers."

In the United States, HotJobs has felt the effects of a weakening economy. In February, the company predicted that revenue for the first quarter ended March 31st would be just 3 to 4 percent above the $31.5 million posted in the fourth quarter, with a loss of about 17 cents per share before non-cash compensation charges and amortization of goodwill.

HotJobs has also cut about 15 percent of its staff since the start of the year, and expects a $2.5 million to $3 million charge to first-quarter earnings to cover costs associated with the layoffs .

Boylan, who had been the recruiting firm's chief operating officer, took over as interim president and CEO on March 1st, when founder, president and CEO Richard S. Johnson resigned. Johnson remains chairman, focusing on new markets and strategic development for the company.

HotJobs said that its online employment exchange is used by more than 9,100 companies. The company also offers services such as job-applicant tracking software and a business-to-business (B2B) exchange for corporate hiring managers and staffing firms.