Adbrite Lays off 40% ---ouch pud!?
"It's not a happy day at San Francisco-based Adbrite this morning. The company is laying off 40 employees, which is 40% of total staff. Among those that are leaving are VP Marketing Paul Levine and VP Finance Bob Feller.
This is the second Sequoia-backed startup to report significant layoffs after last week's meeting whereSequoia warned the CEOs of their portfolio companies of the long lasting effects of the downturn, and urged them to control costs and become cash flow positive. On Tuesday Jive Software, also Sequoia-backed, had a significant reduction in headcount as well.
There is a silver lining to the layoffs, or at least for those who still have a job at Adbrite: The company will now be cash flow positive and profitable, CEOIggy Fanlo and Levine said in a phone conversation. The company had gross revenues of $32 million in 2007. He won't discuss current revenues, other than to say it continues to grow, and that October will be a record month."