The recent downturn in dotcom company strength and confidence continues to rear its gloomy head. On March 1st, PlanetOut Partners, the Internet's biggest non-pornographic gay and lesbian site, was forced to lay off one quarter of its 126-strong staff. PlanetOut Partners was formed from the recent merger of PlanetOut.com and Gay.com.

PlaneOut Public Relations Manager Bryce Eberhart says that even gay companies are not immune to the recent turndown in the dotcom field. Some of the layoffs are a result of redundant as the new company consolidates the departments and functions from the two dotcoms.

Two of the people asked to leave were Gay.com news head Judy Gerber and NewsPlanet reporter Cindy Friedman. No list of names was provided by PlanetOut.

Eberhart adds that under this tougher climate, the investors behind PlanetOut Partners insist that a profit be shown by the end of this year. While he stresses that editorial and content will have a larger role in the news company's site, the new company has to make a renewed effort to be profitable.