The bad news for startups keeps on coming in. This time it’s RubyOnRails application hosting provider Engine Yard that has laid off 15% of its staff, as publicly reported on the company’s blog earlier this week. We’ve contacted co-founder Lance Walley and can confirm that 12 out of 82 people have been let go, across several departments.

The TechCrunch Layoff Tracker has been updated accordingly.

Engine Yard, which essentially delivers a platform to build, manage and host Rails applications, raised raised a $15 million Series B round of funding from new investors New Enterprise Associates and Amazon last July, with investor Benchmark Capital also participating. The round brought its total amount of funding to $18.5 million.