The layoffs keep rolling in. The latest startup to cut back is Hi5, the third largest social network. But you wouldn’t know it from reading the company’s blog, which touts some positive press coverage today:
During a down economy, things are looking up for hi5. Today hi5 was featured in Fortune.com, soon to arrive on news stands.
Yet on Monday, the 110-person company laid off 10 to 15 percent of its employees in what it is calling a “restructuring” move. A tipster told us that the cuts came mostly in Design, HR, and QA. I called to ask for a comment and Hi5’s VP of marketing Mike Trigg confirms:
We did a restructuring this week. We did let a few people go, but we are also hiring people.
The world changed for everybody dramatically last week. We are focused on growing our business. We have great momentum.
Trigg says Hi5 should not be lumped in with other startups that are cutting back right now in order to lower their burn rate and survive longer. With openings that the company is still trying to fill, he says the net effect on headcount will be close to neutral.
Hi5’s growth actually has flattened to around 56 million unique visitors worldwide, according to comScore (August figures). But it is still the third largest social network after Facebook and MySpace.
here comes another bubble ……………..
Layoffs in SF. Precursor to a really softening in the housing market in the bay area?
This is only what we hear…I bet there are more other web companies which lays off people and don’t talk about it….so the carnage is actually bigger than it seems…
Er, yeah but the people who get laid off usually talk about it (even if they are made/encouraged to sign gagging orders) through anonymous social media, valleywag, etc
nice piczo man if you have msn you can add me donna_mommys_girl@hotmail.com im 19years old and i go to lo-ellen park school i hope you add me man how old are you
Hi am John, here am looking for a friend.
so are you looking for a friend uh john
how do u know my name is im just asking tht
Over 50 people have now been laid off in the last 3 hours in San Francisco Tech Space.
Touch up your resumes if you are at an unprofitable startup!
Heads are rolling, and we need to tighten our belts – for the storm that’s coming our way
did I miss any other cliche?
Hi5 is Number 3 social network? I have never heard of them before.
You live in the U.S. Check them out on quantcast.
wow, whos next google ?
you did
Joe,
hi5 is in fact the 3rd largest social network in the world. The reason that you haven’t heard of us is because the majority of our market share is in countries outside of the US. We are leaders in Latin America, Africa, Asia and Europe, growing steadily in the US, #1 social network for Spanish-speaking countries. You should check it out! http://www.hi5.com
BTW – I work for hi5.
Really?!
I could not tell!
Good thing I only have one staff member so far – me!
http://www.madtownlounge.com
Care for a date?
yea me i do
do u have a g f
In the United States, Nielsen’s rankings of Top Social Networking Sites (unique monthly visitors, U.S. Home & Work) says: No. 1 MySpace; No. 2 Facebook; No. 3 Classmates.com; No. 4 LinkedIn;… No. 15 Hi5. http://tinyurl.com/69urgx.
John
http://www.classmates.com
“according to comScore (August WORLDWIDE figures), it is still the third largest social network after Facebook and MySpace.”
That’s awesome. I heard Google’s Orkut was rocking in Brazil.
People ARE still hiring. Think of this as a time of opportunity. http://www.tech...enture.com/jobs
Yes, companies ARE HIRING, at least in Seattle. Classmates.com, the No. 3 online social network in unique monthly visitors (Nielsen, U.S. Home and Work http://tinyurl.com/69urgx) is currently hiring for about 20 positions http://tinyurl.com/4ukznm.
John
http://www.classmates.com
I was home-schooled. Can I join?
I’m beginning to think this bubble is scarier than the last one. The last tech burst led to a growing number of web companies who’s business models were to get many users, then sell to the highest bidder. Many of these properties were never profitable, but the thinking was they could eventually be monetized. Thus, we saw an increase in funding, new sites, acquisitions, blah blah.
Well now, the latest bubble is bursting and the cat is out of the bag. If you don’t have a revenue model TODAY, you’re going to have a hard time getting funding or being acquired. No longer will your valuations be based soley on your user base.
So, this burst should lead to an increase of sites that have viable revenue models, right? Only problem is, no one has figured out how to do that yet, beyond the enterprise market of course. We’re in a crazy cycle. Web 2.0 gave away consumer services for free to get the larger base and sell upward. That ain’t gonna work anymore…but how do you begin to make money on something that’s now freely available?
Try: MySQL, Nessus, VMware Player, ….blabla
The issue is not upselling from free, but solving a real problem that demands people need it — free or not.
Here are some other hi5 stats:
-80+ million registered users worldwide
-56+ million uniques p/mo. worldwide
-#1 social network in 33 countries
-#3 social network in the world
-Translated into 27 different languages
-Social networking leader in Spanish-speaking countries
-Top 20 website on Alexa
Well you forgot to add one more stat: #1 Email spammer
I get more spam from you guys than any other source. And it is NOT OK to use your existing user’s address books to solicit new users.
true dat
geek 1:”Hey whats your startup do?”
geek 2:”Oh we lay off people”
geek 1:”really?”
geek 2:”Yeah its the latest bubble..er…trend. We also have no toilet in the office. That makes very eco-friendly — no more waste and cuts back on the free drinks we need to provide.”
geek 1:”wow…I better do that with my company too!”
Adriana, what’s your point with these stats? This post is about layoffs. Did Hi5 have layoffs? yes?
Also, since you mentioned stats, what is the revenue per user of Hi5? if your company is doing so well, why let people go?
It is hypocritical, imho, to go to posts about Hi5 layoffs trying to make it look like a shining star, when it is struggling, as everybody else. Please, a bit of low profile in these doom days would be appreciated.
LOL.
I like how the comments turned this post into
Hi5 vs. Classmates.com
Like all the others, looks like they’re just taking Ron Conway’s advice and “raising an internal round” .
;P
Social sites are played out now, it was a fade
forgive adriana, she’s just a PR person. all show no go. you can find her on all the blogs, pics with high profile people. she’s a fame monger. she’ll associate with you if you’re famed, otherwise, all you’ll see is her back walking away!
a lesson for the young adriana, you never know who your next manager is going to be. you never know who’s going to give you a blind reference for your next job after hi5. karma girl, karma girl.
How many of these startups laying off employees looking at offshoring as a viable option ?
http://www.confiz.com
@Raza,
hi5 was already working with a Mumbai based firm so almost all the startups already have their setups in India and else where. The problem is that this time around the crises is going to tickle down all the way to the bottom of the food chain…
These companies have far too much staff anyway. In Eastern Europe you could see almost that advanced and very popular sites developed and maintrained by a couple of guys in a garage.
It’s just a matter of organisation, effectiveness and motivation.
Here is a big confusion. Hi5.com is not a Startup!!!
That’s a bit of a bad news. I had only recently created an account in Hi5. What about Orkut, the Google social network? There is no buzz in the US around it at all. It’s mainly concentrated on India and Brazil. But I actually felt it as a better social network.
Lenin
Just a part of the whole carnage.. sad about this HI5 news.. hope no more to come.. please.. please.. please..
People around the world need to help each other.. Forget the issues of power, money and grandstanding.. Let us help each other to make everything okay..
and the most idiotic headline award goes to…
Another big company laying off their workers
I thing that the new president needs to change the world because their is alot of sexual harrasment going on today in the world.
was goody to all ny purto ricans and mexicans.
WaTz goodies to all my Puerto Ricans and mexicans . Represent where u come from . Love yall duces =]
hola
http://somrit.c..._MV,_Music.html
Hi5 Comment Glitter
hi5 ssuucckkks
myspace
is better
Hi5 is a growing network.And is on the good path:)
HI,,,,,,,LOOK…
Here is a great review of hi5 which is made in turkish…meanwhile thx for this great article
I tink facebook is there better then hi5!
http://www.can-bil.com
http://www.online-shopp.net
lllllllllloooooooooooooooooooolllllllllll
hi5 no face bok is more butter then hi5 ankara cuz face book is more to talk to on in
I think hi5 will beat facbook in next few years.