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Financial Crisis

Last Minute Layoffs Keep Coming In

by Jason Wilk on March 26, 2009

With the end of Q1 2009 almost here, trying to cut costs at the last minute to impress investors is becoming a quick trend. We just heard about Google layoffs, now 5,000 people from IBM are losing their jobs in the U.S. Amazon cut 210 people at three distribution centers in Nevada, Indiana, and Pennsylvania. The New York Times also announced a 5 percent cut(1oo people) of its business operations. This is not a good sign of what is to come out of Q1 earnings. Companies are clearly trying to look more lean as they woo investors on staying with them through tough times.

by Jason Wilk on December 19, 2008

The videogames industry is not recession proof. In addition to last month, Electronic Arts announces more layoffs today along with details of closing studios due to weak sales. The layoffs will now total 10.0% of EA’s global workforce, eliminating 1,000 jobs. In addition, 9 total studios will be closed. the reductions will save the company $120 million annually once the plan goes into motion. News of the housesweeping bumped the stock up 4.3%, or 72 cents, to $17.48 this morning.
The restructuring will not officially be completed until March 31st, thus EA will definitely miss their year end revenue estimates of $5.3 billion. Current analysts are calling EA to pull in around $4.7 billion.
This is a smart move for EA. The company is still cash rich, with zero debt. Restructuring will keep them in a stronger position to beat earnings next year once everything is said and done. Don’t count out EA, they are in it for the long haul.

by Jason Wilk on November 26, 2008

Yesterday, the SEC issued its formal cease-and-desist letter outlining its reasoning for characterizing Prosper and other P2P Lending destinations as ’sellers of investment’.
Prosper, the first mover in this space had been trying to ditch the stigma that they were selling investment, but they absolutely were. Now they must register with the SEC to relaunch the business; a process that can take months.
With so many Americans in trouble now, and unable to get credit, these niche marketplaces for loans have turned into ‘business to consumer’ lending havens and they should definitely have to register with the SEC
New to the scene, Loanio also has to shut down until the SEC approves their registration. This is good news for Lending Club, the Facebook app that filed with the SEC in April and is about to get approved for every state next week.

by Jason Wilk on November 24, 2008

Google has been quietly laying off staff. According to sources, 500 recruiters have been laid off and a supposed 10,000 more are to come.
Things are changing at Google. Since just September, Matt and I have noticed a significant decrease in important things like the snack and shwag offerings when we head over there for lunch (thanks Jonathan)

by glu on October 14, 2008

Redfin, an online real estate service, has slashed 20% of its workforce in spite of respectable revenues and $21M in funding.
Glenn Kelman, Redfin CEO, previously navigated Plumtree Software through the 1.0 crash and eventually took the company public.
Redfin competitors include Trulia and Zillow