ANDOVER, Mass. (AP) _ Engage Inc., an interactive marketing software and media company, will cut its work force in half as part of a restructuring it says will save between $120 million and $150 million.

The company announced Thursday it would streamline operations and cut 550 jobs over the coming months, through layoffs, job eliminations and attrition. Engage also will move part of its San Francisco offices to Andover.

Engage provides software to companies for mass-marketing campaigns, including direct mail, print advertisements and Internet ads.

Internet giant CMGI owns a majority share of Engage.

The company said it will eliminate ``numerous duplicate positions'' and integrate its sales, client service, marketing and engineering services.

According to the company's most recent financial filings, it increased its work force to 1,150 in the first quarter of fiscal 2001, the three-month period which ended Oct. 31, 2000. That more than doubled the 480 employees working for the company as of the first quarter of fiscal 2000.

The restructuring will cost the company between $17 million and $20 million.

Tony Nuzzo, who has been Engage's chief executive officer since Nov. 20, said when he arrived, there were five presidents reporting to him from five divisions. He said paring that back to one president, and eliminating duplication between divisions, would result in ``clearer, faster communication and greater value for shareholders.''

``It's a shame we have to let some people go,'' Nuzzo said, ``but really this is beginning of a new Engage.''

On Dec. 12, the company reported a 38 percent decrease in revenues over the three months previous. For the quarter, the company posted a net loss of $48.7 million, or 26 cents per share. In the same period a year ago, Engage lost $10.5 million, or 22 cents a share.

Engage shares were off 3 cents at $1.09 in afternoon trading on the Nasdaq Stock Market.