Layoffs Galore: Startups

October 17th, 2008 at 12:00 am
 


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The economic turmoil sweeping across the world is forcing web companies to cut down on costs and streamline their operations. Just this week there might have been a dozen announcements regarding these cases across Silicon Valley. Executives mostly don’t lose their jobs but for other staff, it seems that the fire on Wall Street is burning down their careers.

Today, there’s been a number of announcement from web companies of mass layoffs. Startups are cutting down 10-20-30 percent of their workforces just to survive the crisis. In a tribute to those left jobless, I’ll be listing the announcements here today.

  • Zivity – Co-founder Cyan Banister says that cuts were made across the board, and that the layoffs are a preventative measure that will ensure the company’s sustainability over the next few years as it has become much more difficult to raise further rounds of financing in the current economic climate. Zivity laid off 33% of their staff, from 22 down to 14. [TechCrunch]
  • Hi5 – Lays off 15% of 110 staff. Although there have been cuts, Hi5 is still hiring on the premise that they "should not be lumped in with other startups that are cutting back right now in order to lower their burn rate and survive longer."
  • Jive Software – 38 positions. An ex employee’s personal blog gives an inside scoop.
  • Seesmic – 33% of workforce. "In order to prepare the company and ensure it has as strong a position until we reach to the other side, we have had to make some tough decisions around expenditure – the biggest impact being that we will be cutting 7 positions within the company." [Loic Le Meur]
  • Pandora – "This is a very sad day for Pandora, and for me personally. Today we reduced our staff from 140 to 120 employees. Like virtually every company, Pandora is not immune to the challenges presented by the current economic turmoil. We are trying to react quickly and responsibly to the new environment." [Pandora Blog]
  • AdBrite – laid off 40 percent of its workforce in an effort to be profitable. Two executives, its vice president of marketing, Paul Levine, and its vice president of finance, Bob Feller, were among those laid off. [CNET]
  • Tesla Motors

These are just the ones that have been announced. Of course there will be other cuts and there have been other cut because of the financial crisis and to all those laid off, hold strong, something’s gonna come along.

Image Credit: ChainsawTraining.com