Prodigy Services Co, the IBM Corp-Sears, Roebuck & Co viewdata system joint venture has suffered from the start from the fact that no-one apart from the two partners believed the thing could make money. In the past, IBM and Sears could both afford to support loss-making ventures they believed had long-term potential for years, but neither is now in that happy state. Big cuts must therefore be made, and the Wall Street Journal reports that the fast-growing but chronically loss-making venture is experiencing a major shake-up that has already led to several senior-level departures and will likely involve wider cuts in its 1,100-strong workforce. Prodigy confirmed that it is in the midst of a reorganisation, but wouldn’t comment further because the changes aren’t finished and employees have not yet been told. The aim of the new structure is to give more power to the marketing executives, and less to the officials in charge of programming. At least six top programming officials are leaving, including senior vice-president Henry Heilbrunn, who reported to president Ross Glatzer, the paper says. The aim now is to explore delivery of Prodigy services to television sets via cable as well as to home computers. The two both say they remain committed to Prodigy, but then IBM committed to maintain its dividend in November.
