Commerce One, a former star of the dot.com world, has been forced to take drastic action in order to survive.

The firm, which makes marketplace software to bring buyers and sellers together online, has cut its rapidly dwindling workforce by 30% to 1,100 employees.

The latest cuts come just six months after it shed 1,300 jobs.

The announcement was made as the ailing firm announced a loss of $220.6m (248m euros; �152m) during the first three months of the year.

While the firm's losses were marginally less than during the same three months a year earlier, its revenues plunged by 81%.

Break-even ambitions

Software revenues from the sale of licences plummeted to $8.4m compared to last year's $69.4m.

"Licence revenue shortfall is primarily the result of continued sluggishness in IT spending across all geographic regions," said the group's chairman and chief executive Mark Hoffman.

The firm does not expect any improvement in licence revenues during the next three months.

And chief financial officer Pierre Hoffman admitted he did not know when the firm would become profitable again.

Hype

Commerce One's "business to business" software was once tipped to revolutionise the way companies bought and sold goods.

But, like many other internet start-ups, it failed to live up to the hype.

While the firm's directors blame the economic slowdown for the demise, critics say technology managers have become disillusioned with Commerce One software.

Commerce One's share price was once worth $331, but on Tuesday it closed at just $1.40.