LiveJournal laying off 70% of its staff
LiveJournal: The Russian Bear Slashes a Social Network
The bubble in social networking has burst, decisively. LiveJournal, the San Francisco-based arm of Sup, a Russian Internet startup, has cut about 20 of 28 employees — and offered them no severance, we're told.
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The company's product managers and engineers were laid off, leaving only a handful of finance and operations workers — which speaks to a website to be left on life support. Matt Berardo, a Yahoo executive hired on last summer, is also believed to be gone.
The company's Moscow-based management has told employees it blames the "global economic downturn" — the kind of pat excuse every boss is giving for layoffs, even when mismanagement or a bad business plan is really to blame. The brutal, abrupt cuts suggest something different: That Sup founder Andrew Paulson (above), who paid an estimated $30 million for LiveJournal a little over a year ago, has realized his expensive mistake in buying at the top of the bubble. Someone familiar with the company tells us Paulson lost the CEO job last summer to Annelies van den Belt, a former News Corp. executive, and was given the meaningless title of chairman; he's essentially out of the company now.










