UPDATED: Move Networks Lays Off 30% Of Company, John Edwards Still CEO
UPDATED: I've now heard back from Move Networks and can confirm that CEO John Edwards is still the CEO of the company. In addition, John has now been named executive chairman of the board of directors. Move says 30% of the company has been laid off and they "are making the necessary adjustments and planning appropriately to get to profitability more quickly."
It's always unfortunate for any company to have to do layoffs and for employees to lose their jobs, but if the layoffs help Move get to profitability faster, it needs to be done. I've also been told, but not by Move, that these layoffs were planned back in November and that folks were told their last day would be this week. If that is the case, it was a nice way for Move to do it, giving people three months notice.
While Move won't say how much revenue they did last year, I have heard from people who would know that Move billed roughly $40M in total 2008 revenue. I don't know how much cash they are burning through but with the increased business Move has been signing up and the financial savings they will see from the layoffs, I think Move could get to profitability in the next 18 months if not sooner.
Move Networks made some major layoffs in the past day or two and rumors are circulating that CEO John Edwards has also been let go. While I can't confirm or deny if Move has changed their CEO, I'm hoping it's not true, I can confirm that layoffs have happened. I reached various Move employees in the past few hours who told me they could not comment on what is taking place as they no longer work for the company.
Some Move Networks employees e-mails are now bouncing and when you call Move's HQ and use their automated phone system, John Edwards and other employees names are no longer found. Move did say they will contact me shortly to give me the details, and I will update this post when I know more.
Added 4:21pm – When reached by phone Steamboat Ventures declined to comment on any of the changes today at Move Networks and passed me off to an outside PR agency.
Added 4:29pm – I've now heard from multiple former Move employees who have been let go and it appears the layoffs have come from locations all over North America and not just from Move's headquarters as some were speculating.