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Add Big Fish Games to the list of Seattle area technology companies cutting staff this month.
The 4-year-old distributor of casual games laid off an undisclosed number of employees Tuesday as part of restructuring that Chief Executive Paul Thelen classified as "an opportunity based initiative of our company." At the same time, he said that the company is healthy and hiring, with 20 open positions.
But the layoffs caught some employees by surprise. Kimberlee Stedl, a program manager who joined the company last November, was escorted out of the building by a human resources professional after receiving her layoff notice. She said employees were only given time to grab their jackets and keys, adding that very little information was provided as to why the layoffs occurred.
"It came as a shock and there is really no logic as to why it happened," said Stedl, who was told in a group meeting a few weeks ago that her job was safe. She speculated that the cuts may have been tied to her stock options, which were scheduled to vest in a few weeks.
But Thelen said the vesting of stock options had nothing to do with the recent layoffs, nor did performance issues.
The layoffs were especially grating to Stedl because she said the company just last week hosted an employee cruise on Elliott Bay to celebrate recent milestones.
"Why did they take us on this goofy boat cruise if they were just going to can us a few days later?," she asked. "It is kind of insulting."
Big Fish Games' marketing department was especially hard hit, with Vice President of Marketing Ken Wells a casualty of the shakeup. Thelen said the cuts in marketing occurred because Big Fish is shifting more of its attention to My Big Fish Games, a new service that offers cash incentives to customers to spread the word about their favorite games. More than 100,000 people have signed up for My Big Fish Games since its debut last month.
Vice President of Technology Jeremy Noetzelman also has notified the company's executives that he is considering resigning. Thelen said Noetzelman would depart on "amicable terms."
Two people familiar with the cuts said that 17 people were let go, though Thelen said that number is high. He declined to disclose a specific figure, but added that the cuts represented a very small percentage of the company. He said there were no patterns to the cuts, with people at all levels let go.
What is interesting about the layoffs is that Big Fish, which scored $5 million in financing last December and tapped former Goldman Sachs managing partner Jeremy Lewis as president and chief operating officer in July, has been on a super fast growth path recently.
It added 120 employees in the past 16 months, reaching a peak employment of 140 people. The staff level now stands at 120, with another 20 open positions. Furthermore, Thelen said the company is cash flow positive and that revenue grew by more than 400 percent in the second and third quarters, when compared to the same periods last year.
The former RealNetworks manager said Big Fish did not overhire, nor did it miss its financial targets.
Lewis added that company is not being positioned for an initial public offering or sale, one of the reasons why companies sometimes chop staff.
"We are growing faster than we have budgeted," said Lewis.
Then why the cuts?
"We hired a lot of people and whenever you hire that many people you are trying to predict where the business is going, and sometimes your predictions aren't perfectly accurate," said Thelen, adding that it "eliminated skill sets who didn't match our priorities."
Lewis said the cuts occurred because of a change in priority at the company. He declined to elaborate on the change, saying it would give away a competitive advantage. The layoffs follow recent cuts at technology companies, including CapitalStream, GraniteEdge Networks, InfoSpace and Pacific Edge Software.
Big Fish markets more than 250 downloadable computer games, including popular titles such as "Mystery Case Files: Prime Suspects," "Atlantis Sky Patrol" and "Virtual Villagers."
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Forget the ad space altogether. It's time that Microsoft to show the long term vision that created their success in the first place. Clearly there are far more valuable, provocative and lucrative problems for technology to solve than consumer spending and entertainment. It's time for the Blue Monster to think bigger thoughts."
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Posted by unregistered user at 10/11/06 11:09 p.m.
Lewis said,
"We hired a lot of people and whenever you hire that many people you are trying to predict where the business is going, and sometimes your predictions aren't perfectly accurate," said Thelen, adding that it "eliminated skill sets who didn't match our priorities."
Oh really? How many companies do you know of who's VP of marketing, the marketing director, the one and only staff content manager/writer, the art director, the director of creative services, (just to name a few), are considered "non-priorities?" If you think you're getting the truth from Thelen and Lewis, you've fallen for a BIG FISH story... hook, line and sinker!