API aggregation platform Gnip is laying off 7 out of its 12 employees, or 60 percent of the startup’s staff, we’ve confirmed with CEO and co-founder Eric Marcoullier. He says that Gnip is planning to hire an engineer in the near future, which will bring the final count back up to six employees. We’ve added the cuts to our Layoff Tracker.
Gnip serves as an API hub, collecting data from services like Twitter, Facebook and Digg, and pushing it out to other data-consuming services and Websites. Data consuming sites using Gnip’s platform can get public data streams for over 30 social media networks and sites, including Twitter, Digg, Delicious, YouTube, WordPress, Flickr, Six Apart and others without ever visiting those sites or accessing their individual APIs.
Marcoullier says the reduction in headcount is necessary to streamline the business. Orginally, Gnip tried to build its own database, but it has seen a massive influx of data to the system, which Marcoullier estimates at around 150 million Tweets, status updates, Diggs and bookmarks pulled into the platform per day. Gnip has been forced to restart from the ground up when it comes to building a database that can be a central part of Gnip’s platform. It is abandoning its own effort and will move to an existing database that can be integrated into its service. This shift of focus and manpower has forced Gnip to re-structure its staff. But Marcoullier says that Gnip has a client base of “several dozen” companies that is still growing.
A few months ago, Gnip released its own Push API which lets any site patch together its own version of a Friendfeed or Twitter-like data stream. The new service lets companies filter and white-label the stream so the technology is fully integrated into the business’ infrastructure. Companies list out the most common data requests that are made on their APIs and websites and Gnip will collect the relevant data and deliver it in real-time to any approved third-party. For example, the service would let a travel site analyze real-time data, such as fluctuations in air fare, and syndicate changes in fare sales immediately. Gnip is also committed to help create 301works.org, a back-up directory for shortened links.
Gnip is trying to build fundamental infrastructure for the real-time Web, but finding the right technology and business model is happening in fits and starts.
Sucks for Radian6 and good news for Viralheat
It sucks becaaaaaaause…
Because we’re still providing the same volume today as yesterday?
Because once we’re on a new platform we’ll be more responsive to Radian6’s requests?
Because we now have two years of funding in the bank instead of just one?
Oh, wait, those are all good things.
HAHA. Nice one.
Know it can’t be easy to let a good team go, so best of luck with chapter 2!
nice spin, eric. fact is if you are dumping 7 of 12, you F-ed up somewhere along the line.
You obviously have never met me because I wear my fuckups like a badge of honor. I’m speaking at FailCon at the end of the month for fuck’s sake.
The layoff is without a doubt my fault. It is the result of many, many fuckups on many different levels. Some were big — I though people were going to push their data to us. Many were so small that I’ve forgotten them.
None of this changes the fact that our existing customers are getting the same quality of service today as they were yesterday.
Yo da man, Eric. Don’t let the haters and know-nothings get you down.
Sorry to hear that Eric, I hope the new tack gets you into water with a stiff breeze from aft.
Btw. the Gnip API has some nice things that are a lot trickier somewhere else… getting thumbnails out of an entry is one of them.
Joerg
Sorry dude, how is raising a bunch of cash and then laying off your staff smart? It’s dumb. You screwed up with your engineering while there are startups who have not raised a dime running circles around you.
Even Spinn3r is demolishing you. The only thing left is for you to bend over.
Shan, who are you arguing with? Yourself? Eric’s already admitted to mistakes.
The people that actually matter in the discussion are investors, customer and employees. Interestingly, anonymous internet commenters don’t matter at all.
Awesome you have two years of funding instead of one at the expense of your employees, really cool I bet engineers are lining up to work for you and be part of your next f@#k up!
I really don’t understand what they do.
Why don’t you put “7 people” in the headline instead of “60% of staff” ?? I’ll tell you why, because it’s a lame story.
Seriously Techcrunch, we’re not stupid. You just keep doing that sh*t.
quote from friend of mine who uses their product:
“their product is complete shit”
sounds like their apis are terrible.
this is why i think it is sometimes crazy to back someone who has had one previous success. Sometimes the product needs more than one time successes behind it. Nothing interesting here.
haha comments. And obviously nice article.
Sad news, they seemed to have a great bunch over there and my dealings with them have been great.
Goodluck to those that have lost their jobs and I am sure boulder will have plenty of other startups dying to get their hands on these people.
Eric – good luck to you. It’s tough enough running a business and knowing when to pivot, even if that means tough decisions involving people you like working with. TC community should be rooting for startups not against them.
all the best Eric, am sure you will rock it second time around
..half the battle is having the balls to come out and admit your fault like this.
Eric you rock it will all go well