According to the TechCrunch layoff tracker, 49 companies have laid odd 20,400 employees so far.
It all started with the steep market dive caused by the credit crunch and the Lehman Brothers non-bailout.  The dive accelerated with startups when Sequoia called a all hands CEO meetings for their portfolio companies. Sequoia is not a second rate VC firm-when they talk the entire valley listens.  Overnight the mindset for startups have changed and other VC pulling back on investments, cutting valuations and having their portfolio companies cut 25% or more of their employees.  Unprofitable firms are being told to get to cash flow break even or even sold.  Advertising based business models are being told to come up with alternative models as advertising rates are expect to crash.

It’s a domino effect my friends, what is the next shoe to drop drop?  Stay tuned with Please bookmark us, subscribe to our RSS feed and help us spread the word.

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