News
Widespread job losses in Silicon Valley
Matt Grainger Oct 20 2008, 1:47pm
Memories of the dotcom crash sees tech companies tightening belts
A spate of job cuts has cut across the heart of the tech industry as investors have warned Silicon Valley’s businesses to prepare for a downturn.
The job losses have been triggered by a number of company directors who feel that they are more realistic about the possible implications of a downturn in trade.
Online advertising network Adbrite cut 40 of its 100 staff last week, with chief executive Iggy Fanlo saying: “It’s the need to get profitable immediately. We’re heading for some tough times. I made the decision to go very deep, very quickly so we won’t have to do it again.”
A private investors meeting held by Californian venture capital firm, Sequoia Capital set the tone. Attendees were greeted by a presentation of a gravestone bearing the words “RIP Good Times.”
The FT reports that other experienced start-up investors have been spreading the same warning as Sequoia, telling companies to cut back in anticipation of a severe downturn.
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