Comments on: Gaia Online Cuts 13% Of Staff Despite Claims Of Record Earnings

By: Virtual Worlds Are a $600 Million Business

Virtual Worlds Are a $600 Million Business — Wed, 21 Jan 2009 22:02:06 +0000

[...] Gaia Online Cuts 13% Of Staff Despite Claims Of Record Earnings [...]

By: jane

jane — Thu, 15 Jan 2009 17:19:23 +0000

McAfee just did the same thing: they cut jobs despite record revenues. What gives?

By: Paid Content : Layoffs Roundup: Sun Media; Midway Games; Gaia Online; American Media

Thu, 18 Dec 2008 04:52:13 +0000

[...] year,” social net Gaia Online laid off 13 percent of its workforce, according to the company blog. TechCrunch estimates this to be 36 employees, 16 full time workers and 20 contractors. The company raised a [...]

By: A Gaia Employee

A Gaia Employee — Wed, 17 Dec 2008 01:52:07 +0000

Disclaimer: I’m presently employed by Gaia

1) The “20 contractors” number is entirely incorrect.

2) The Sherman quote is a paraphrase from something said a while ago. When Sherman made the statement he was optimistic that the economy would not hurt virtual goods sales. It turns out that Gaia was hit much harder than expected. Regardless, Sherman’s statement was as accurate as he could predict at the time and is being taken out of context in the above quote.

3) The fact that Gaia raised as much money as it has does not mean layoffs are inappropriate or unnecessary. The money raised is essential for surviving an income downturn and riding out a period of heavy losses, even with reduced staffing costs.

It’s tragic that this happened at all, especially in the middle of the holiday season. But that’s no excuse for a dishonest article about the company.

By: Gaia Online has laid off 36 employees « LayoffBlog.com

Gaia Online has laid off 36 employees « LayoffBlog.com — Tue, 16 Dec 2008 23:13:01 +0000

[...] social network, software — DF @ 3:12 pm Tags: Gaia layoff, Gaia Online layoff According to Techcrunch: “Gaia Online, a social network/virtual world hybrid that includes one of the web’s most [...]

By: Gaia Online lays off 13% of its Staff | Startup Meme - Technology Startup and Latest Tech News

Tue, 16 Dec 2008 21:52:30 +0000

[...] has laid off 13% of its staff, amongst claims that it has bagged record earnings. The company laid off 36 of its employees in an effort to cut back on costs, this is confirmed in Gaia’s [...]

By: fb583821011

Tue, 16 Dec 2008 21:29:26 +0000

It’s really hard to say why people get laid off when you look at it from the outside. My speculation (having worked there in the past) is that it was a long term decision, and a chance to get better talent given the recently unemployed talent pool out there.

These folks have a great business model, and I am pretty sure the sale of virtual items are unaffected by the recession for the same reason that Budweiser (NYSE:BUD) doubled it’s stock since March.

By: Boris Epstein

Boris Epstein — Tue, 16 Dec 2008 19:05:41 +0000

Does anybody know which divisions on Gaia are being cut?

http://www.thewebwar.com

By: Layoffs:The Holiday Spirit Dies » Adotas

Layoffs:The Holiday Spirit Dies » Adotas — Tue, 16 Dec 2008 17:58:12 +0000

[...] good now, but wait until next year.’ Giaia Online, a social network/virtual world hybrid, laid off 13 percent of its staff, about 36 employees, after raising $11 million in [...]

By: Gaia Online recorta el 13% de su personal

Gaia Online recorta el 13% de su personal — Tue, 16 Dec 2008 16:54:58 +0000

[...] personas a tiempo completo y 20 contratistas, lo que equivale el 13 % de su personal según informa TechCrunch. Esta decisión toma por sorpresa a los trabajadores de Gaia Online que hace apenas unos meses [...]

By: Gaia Online despide al 13% de su plantilla

Gaia Online despide al 13% de su plantilla — Tue, 16 Dec 2008 14:32:49 +0000

[...] Online, un híbrido entre red social y mundo virtual, ha despedido a 36 de sus empleados, lo que representa el 13% de su plantilla [...]

By: Mia

Mia — Tue, 16 Dec 2008 14:22:02 +0000

I agree, last quarter should typically be the strongest for sales so no surprises there but whether the company’s really doing as well as the CEO claims is anyone’s guess..laying off 13% of employees doesn’t exactly inspire a lot of confidence.

By: Toni Anicic

Toni Anicic — Tue, 16 Dec 2008 09:13:01 +0000

It’s not so unexpected to have record sales in December. Christmas time is coming, people will be shopping presents. I don’t see their record sales having anything to do with the layoff.

By: chris

chris — Tue, 16 Dec 2008 08:26:28 +0000

Very likely – I bet it’s happening a lot at the moment and not just in the tech sector.

By: BT

BT — Tue, 16 Dec 2008 07:55:12 +0000

You’re looking for logic? Everyone’s doing it nowadays. LinkedIn, citing the economy, laid off more than 10% of the staff just a week after announcing that they’d received over $20 million that they “didn’t need” and just days after an article quoted the founder as saying the company was “recessionproof”. It’s not always the economy, stupid. Sometimes, it’s just … stupid.

By: CMC

CMC — Tue, 16 Dec 2008 07:22:58 +0000

Wow, the Sherminator wielding the axe a week before Christmas. Hasta la vista, baby!

By: Confirmed: GaiaOnline.com Slashed 36 Employees | FuckedStartups

Confirmed: GaiaOnline.com Slashed 36 Employees | FuckedStartups — Tue, 16 Dec 2008 07:22:08 +0000

[...] Gaia Online, a social network/virtual world hybrid that includes one of the web’s most popular forums, has laid off 36 employees, or around 13% of its staff. Of those laid off, 16 were full time and 20 were contractors. TechCrunch reports it here. [...]

By: E

Tue, 16 Dec 2008 07:21:10 +0000

It’s very possible that the CEO is using the current economic situation to streamline the company and get rid of some ‘dead weight’ by removing some executives that were probably on their way out sooner or later anyway.

By: Waldo

Waldo — Tue, 16 Dec 2008 07:20:36 +0000

Where are their tacos????