On-line film distributor AtomShockwave has confirmed that it is closing its London office as part of widespread cuts across the company only months after the on-line giant was created from the merger of AtomFilms and Shockwave.

The San Francisco-based company, formed in December from the union of the two internet sites, is slashing its 170-strong staff worldwide by two thirds. The cutbacks mean closing offices in New York and Los Angeles as well as London, although a spokesperson said that a Japanese office would be maintained.

AtomShockwave will now put the brakes on content acquisition, although it will continue to service existing deals out of San Francisco, From a 1999 partnership with the UK's Aardman Animations, the company distributed the highly successful Angry Kid short. The company has also partnered to distribute shorts from film-makers including Bernardo Bertolucci, Nicolas Roeg and Jim Jarmusch.

AtomShockwave said it would now focus on advertising, sponsorship and syndication. The company will maintain its atomfilms and shockwave websites.

The cuts come despite AtomShockwave raising $22.9m in a funding round in March. The company, among the last internet entertainment sites left standing, said this week's redundancies were "to accomplish previously stated business goals and objectives". AtomShockwave had previously said it would be profitable by the end of the year.