I got this tip earlier today from couple of sources earlier today, but LocalTechWire confirmed it: mobile content and applications technology firm Motricity will lay off about 16 percent of its full-time employees as part of a move to improve efficiencies…some 50 employees were given 60 days notice that their jobs were being eliminated. All will receive an additional four weeks of severance pay plus an additional week of pay for each year a person has worked at Motricity, according to the company.
The company employs 425 employees, one third of whom are contractors…Most of the people affected by the layoffs work in Durham, NC, where it is headquartered. No senior, or c-level, executives will be laid off, and no business groups will be dissolved, the company said. Motricity has raised more than $150 million in venture capital.
Motricity To Lay Off 16 Percent of Employees
Summary:
I got this tip earlier today from couple of sources earlier today, but LocalTechWire confirmed it: mobile content and applications technolog…
anyone have any thoughts on this announcement? Either they
A. had too many employees and are correcting
or
B. business is down and they need to adjust
or
C. Acquisition or IPO in the works and these are the final steps towards that end
or
D. VC's stepped in with a request to slash expenses
Anyone?
A. The cost of working up all those sites is more than the the revenue being brought in, so adjustments always are being made. A lot of expensive contract employees work there, it's pimp heaven.
Not B, business is not "down" it's just not raking in what was expected. Mobile content and content providers go through phases of being hot sellers and then cooling off rapidly, so revenue streams are always in flux.
Also C, they've wanted to go public for eons, but becoming buyout-friendly would work to the advantage of the principals (and probably screw most of the people who do the actual work there).
I'm sure D plays a part, the VCs wanted to begin offshoring a lot of the work.