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(NOTE: See Updates Below. Saturday 6:30 a.m.)
Jobster, the job search engine that has raised $48 million in venture financing over the past two years, is undergoing an analysis of the business that could involve layoffs or other changes in the first part of 2007.
The annual review will be presented to the Seattle company's board in the next few days, with decisions to be made shortly thereafter. A Jobster spokesman said it was too early to say what would result from the plans. However, the spokesman did indicate that Jobster -- which continues to post month over month revenue growth -- is seeking to become profitable in 2007.
Jobster employs about 145 people -- making it one of the biggest newly created Internet companies in Seattle. In order to accommodate the growth, it moved into a new headquarters at 3131 Elliott Ave. in September. But a source tells the P-I that Jobster recently instituted a hiring freeze, a sign that the company may have grown too big too fast.
The Jobster spokesman said the company has not made a decision about hiring plans until it completes its annual review.
Jobster also recently lost one of its vice presidents, though the company declined to identify the executive.
The company's chief financial officer, Ron Stevens, announced his departure in October after less than a year on the job. A replacement, David Eckert, was named last week.
Jobster faces plenty of competition in the job search category, including threats from established players such as Monster.com and upstarts such as Indeed. It has tried to carve a niche by helping big companies such as Microsoft, Google and Starbucks find talented employees and by rolling out services that allow job seekers to find information about potential employers.
Here's a story I did on Jobster in July after it raised $18 million in funding.
UPDATE: Om Malik also picks up on the rumors of possible layoffs at Jobster, citing sources who say up to half of the staff may lose their jobs. Malik also points to this post from Jobster Chief Executive Jason Goldberg last Friday in which he asks people to "put down your pencils .... calm it down, relax a bit, and have a nice holiday. we've got no news to give ya before the new year."
I talked to the Jobster spokesperson last Thursday after I started hearing rumblings that changes might be coming at the startup. As I noted above, the spokesperson said that the company is undergoing an annual review and more will be known next week.
UPDATE: Goldberg updates his blog with four reasons why profits are important to a company like Jobster. He notes that "part of running a smart business is making adjustments and in doing so focusing on best channels/strategies and optimizing the business towards desired goals."
In an e-mail, Goldberg says that the company plans a board meeting for tomorrow to discuss the future direction. He writes that the meeting doesn't necessarily mean a final decision will be reached this week.
"What I can say is that the changes we will make are 100 percent voluntary and (management) proposed (versus) board dictated," he writes.
It certainly appears that layoffs are coming, especially when a CEO is using phrases such as "optimizing the business" and "tough choices." Stay tuned.
UPDATE: Exceler8ion, a blog devoted to online advertising and social media, obtains internal e-mails from Goldberg to Jobster employees. A Jobster spokesman tells me that the memos -- one sent last week and the other sent Tuesday night -- are authentic.
Goldberg uses the words profitable or profitability half a dozen times in the memos, saying at one point that "we are committed to building a profitable company in 2007." He adds that "official news" will be released in the new year and asks employees to "please try to stay as focused as possible."
UPDATE: Goldberg spends more time talking about the upcoming changes at Jobster, though does not provide details. He also discusses blogging, saying that he writes a blog over the objections of his PR firm "cause i'm different and i hate being handled." He also says it creates transparency, something he tells others to embrace. An anonymous commentator -- claiming to be an "upset" parent of a Jobster employee -- then asks why the company can't call a staff meeting to tell employees what is going on.
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Posted by unregistered user at 12/26/06 7:43 p.m.
Jobster doing layoffs, oh, the irony.