Browsing Category: "dotcom"

Facebook facing cash issues – after raising $516M last year?

Friday, October 31st, 2008 | dotcom with No Comments »

Facebook’s CFO was recently seen in Dubai trying to raise capital.  Why you ask? It seems that Face is growing to fast and all that new hardware costs serious bucks.  Techcrunch has a great analysis of the issues facing Facebook.

The highlights are that Facebook has grown 118% in the last year!  To support these visitors, the company is spending $100M on 50,000 servers and another $120M annually additional staff.  Throw in another $100M for desks, computers etc.

Company revenues are $265M…but most of the international visitors don’t generate revenue.  But at the rate company is spending cash, they are going to run out money soon!  Compounding the problem is that ad-spending with dive in the recession next year, so now we are looking at reduced revenues.

Security software company Symantec doesn’t provide security for it’s employees.

Friday, October 31st, 2008 | dotcom with No Comments »

In the Q3 earnings conference call, CEO John Thompson announced an earning shortfall and as is the case most of in these cases, announced a layoff of 800 employees (4.5%) in order to meet Wall St. earnings estimates for the next quarter – it’s always easier to cut your way to profitability than it is to grow sales.   The good news is that CEO Thompson will get his bonus….($1.68M on top of his $800K salary).  Mr. Thompson has made a $71.84M in the last 6 years as CEO of Symantec.  Has anybody thought of reducing the executive salaries to save a few jobs?

In another cost cutting move, the company will also be transferring it’s IT operation and finance operations and employee to HP’s Electronic Data Systems.   It will be comforting for Symantec employees to hear that last month HP laid off a massive 24,600 employees when it acquired EDS.  Symantec employees better start practicing “Do you want fries with that?”

Update: Symantec competitor McAfee in their Q3 conference call announced record sales (and no layoffs).

It’s got to be bad if Google’s cutting back

Thursday, October 23rd, 2008 | dotcom with No Comments »

Look’s like the kings of the search Hill isn’t impervious to cutbacks, even though revenues advertising increased 31% for year over year for the 3rd quarter.  Rumors are they let go 500 contract recruiters and will be giving 1,000 employees their walking papers.  Also sounds like contractors will be restricted to certain security areas so they don’t sample some of that delicious free google food.

Personally, I’m watching to see if Google reduces their catering bills….do you realize they spend $5,700 per employee annually to feed them?  WTF- Thats a lot of food.  What are they having? Surf and Turf every night?  How about an invite dudes?

Update: ValleyWag is now reporting the Google is closing some cafeterias.

Src: FuckedStartups, VCsAndAngels

Imeem doubly screwed.

Thursday, October 23rd, 2008 | dotcom with No Comments »

Sequoia backed social media service Imeem laid off 25% of their 80 person staff.  In addition to the layoff the company hired investment bank Montgomery & Co. to help find a buyer (sucker) to pay $200m to buy the company.   Hello? $200m? last time I checked the stock market is down 39%.  Who has the stock currency (cash in your wildest dreams) to buy an advertising business especially with advertising rates being slashed?

Source: PaidContent

Social Network Hi5 kicks 15% to the curb

Saturday, October 18th, 2008 | dotcom with No Comments »

The biggest social network you’ve never heard of, Hi5, just laid off 10-15% of their 110 person staff.  Why haven’t you heard of Hi5?  Because most of their users are in comparatively smaller internet markets like Latin America, Asia and Europe.  Here in the US, they are known as the largest social network of Spanish speakers.  On that note…here is one for ya: ¡Ayúdeme yo me he caído y yo no puedo levantarme!

Source: TechCrunch

Burning down the house – Zillow lays off 25%

Friday, October 17th, 2008 | dotcom with No Comments »

Seattle based Zillow announced they had cut 25% of their staff of 150.  Zillow is one of the better funded startups with $87M from Benchmark’s Bill Gurley.  The CEO Rich Barton was quoted saying “I’m sad, this is hard, but business is just fucking great.”  Sounds like the CEO is as inflated as the Zillow “zestimates” of housing prices in my area.  This layoff comes on the heels of fellow real estate startup Redfin laying off 20%.