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Monday, January 5th, 2009
articles.php?which=Start-UpsStillOnALayoffBender
Start-Ups Still On A Layoff Bender.

Start-ups continued slashing their business plans to bits this week with layoffs at a pace so rapid that it was hard to keep up with them. Here's what happened, via the TechCrunch Layoff Tracker:

-TEN Israeli-based start-ups made layoffs this past week including Exanet, which dropped 20% of its staff, yoomba, which axed a full 50% of its employees, along with Puding Media, SupportSpace, Starhome, Extricom, Discretix, Olista, Amdocs, Delver, and NewACT.

-Here is in the States, Revision3 dropped 30% of their people, Smashface cut 30%, Intrepid learning axed 5%, while start-ups Evella, Emusic, Razorfish, and Sonic Solutions also handed out pink slips.

-Perhaps the hardest hit start-up of the week though was matchmine, a Needham, Mass-based start-up that actually gave up the ghost. The company, which generated media recommendations based on what you told them you liked and what you didn't, didn't appear to have been struggling. While company CEO Michael Troiano didn't give an explicit reason why the company shuttered, he left a cryptic message on the company blog: "I could not have imagined this last Thursday, let alone earlier. It is one thing to be failed, quite another to have been deceived." Snap?

-Yikes. Looks like Tesla Motors, the start-up that sells green sports cars to the uber-rich, may be in trouble. Company CEO Elon Musk admitted yesterday that the company only has $9 million in the bank, according to Reuters. While they say they hope to close a $20 million round of funding soon, the 1200 customers who've put down $5-$60K deposits for their as-yet-to-be-delivered cars may be feeling a touch nervous. So far Tesla's only delivered 50 cars, Valleywag points out.

-In big business news, American Express, Time, Inc., Motorola, and Qwest also announced layoffs. Motorola says they'll cut 3,000 jobs as a result of a $397 million loss. American Express painted a similarly gloomy picture, announcing that they plan to ax 10% of their workforce worldwide. Time, Inc. also spread the doom and gloom. Not only are they laying off 600 employees, but today the company CEO said that company's October revenues were "looking like 1931." Lastly, Qwest says they'll cut 1200 jobs by the end of the year to offset a 93% drop in earnings last quarter.

-Aren't video games supposed to be recession-proof? Electronic Arts, the maker of popular games like Madden NFL and Medal of Honor, announced this week that they're cutting 6% of their employees and are lowering profit forecasts in an attempt to save $50 million.

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