News Flash: Some tech firms are actually hiring staff in 2009 |
Follow the ups and downs of a new Seattle startup in a series of behind-the-scenes posts by its founders.
Mark Oskin, CEO of PetraVM, plans to double the workforce in 2009. In the background, left to right, are Peter Godman, Andrew Whitaker and Kaya Bekiroğlu. PHOTO BY MARCUS R. DONNER
It is tough times in the Seattle technology industry as nearly every other day brings news of more layoffs. From big players such as Microsoft, Attachmate and RealNetworks to small, venture-backed startups, the climate appears rather bleak.
But not every company is cutting back. In fact, some Seattle area technology companies are using the downturn to grab market share and gobble up talent. Microsoft -- despite announcing layoffs of 5,000 people last week -- has even said it plans to continue hiring in key areas. And tech entrepreneurs who were lucky enough to raise capital in recent months also are expanding payrolls, albeit at a more cautious pace than this time last year.
"You have to start companies now to take maximum advantage of the upswing when it happens," said PetraVM co-founder Mark Oskin, whose company recently pulled in $1.5 million in venture funding. The stealthy Seattle software startup plans to double its staff of four this year, with plans to expand to 15 to 20 workers by 2010.
"Personally I think it is the perfect time to start a company. Good people floating around, and smart VC's know that this economic climate won't last forever," explains Oskin.
After raising a $6.5 million venture round last February, Seattle online database service Blist also is looking to hire between two to four people. Among the possible hires are a chief marketing officer and a CTO/vice president of engineering.
"The key in this economy is to error on the side of keeping the burn rate low, but being strategically opportunistic when you have a chance to upgrade the caliber of the team," says Blist founder Kevin Merritt.
Six to eight jobs certainly won't make a dent in the overall economy. But PetraVM and Blist are not alone. Other startup companies such as Avvo, Adapx, Eyealike, Widemile, ExtraHop, Gist, Wetpaint, Apptio, SkyTap, Groundspeak and NetMotion Wireless are adding small numbers of staff. And some larger tech outfits in the region also are bulking up.
As of Monday, Amazon.com had 99 positions listed on its Web site for the month of January. The vast majority of the jobs are located in Seattle -- primarily in software engineering and development. But the online retailer -- which had about 17,000 workers at the end of 2007 -- also is looking for an associate buyer in the toys group and director of marketing for the Kindle.
[Related story: A look at Microsoft's hiring plans.]

Big Fish Games -- the profitable maker of casual games such as Mystery Case Files -- currently has 35 open positions in testing, development, data warehousing and marketing.
The Seattle company had the fortuitous timing of raising a massive $83 million venture round in early September, just weeks before the cracks in the economy became apparent to most. That cash infusion -- along with some of the counter cyclical trends in the casual gaming business -- have put Big Fish in an unique position.
"This is the perfect recruiting storm for us, created by both the economic downturn and Big Fish Games emergence as the category leading brand in online interactive entertainment,” says Chief Executive Jeremy Lewis. (Pictured, right) The company, which recently moved into a new office space on Elliott Avenue, employs 350 people. That compares to just 55 workers four years ago.
There are also opportunities in specific segments of the tech industry which are performing well despite the rough economy. ThePlatform, a Seattle distributor of online video which is owned by Comcast, plans to add about a dozen positions in development and network operations to its staff of 130. "Despite the overall economic climate, the consumption of premium online video continues to grow - especially for our customers," said thePlatform's Ian Blaine, whose clients include news organizations such as Associated Press, News Corp. and others.
Startup companies that help organizations cut costs also are doing well.
Avidian, a maker of low-cost customer relationship management software, plans to hire two or three new sales staffers in order to keep up with its nearly 25 percent annual growth rate. "We are in the must have category of software," said Avidian CEO James Wong. "In this dire economy, people need to cut the fat out of the sales process."
Meanwhile, President Barack Obama's proposed efforts in clean tech and alternative energy may spark new job creation in those sectors. To take advantage of those changes, Optimum Energy is hiring everyone from mechanical engineers to sales people as it rolls out new software to manage energy use in large commercial buildings. The Seattle company is hopeful that more building managers -- dealing with vacancies and construction delays -- will turn to its software as they look to save money on energy costs in a tight economy.
And even some companies that cut staff in recent months are considering hiring again. Redfin, the online real estate startup that eliminated 20 percent of its staff last October, may hire as many as 15 people this year in engineering and real estate operations if revenue holds up. Any new spending will be "paid out of the cash register," said Chief Executive Glenn Kelman.
Despite the hiring trends at some companies, the ranks of the unemployed continue to swell in the state. Last month, the unemployment rate hit 7.1 percent, which compares to 4.6 percent for the same period last year. A record 90,331 people filed unemployment claims last month, a number that could certainly go up with news this week of layoffs at Starbucks and Boeing. Furthermore, venture capital investments last quarter fell to the lowest level in the state in more than a decade. That means there are fewer dollars available for startup companies to add staff.
The tight capital markets and general economic headwinds are causing some companies to adjust hiring plans, including those that added headcount aggressively over the past year. Tableau Software, a Seattle maker of data visualization software, is being more selective about its hiring.
"We grew so much in 2008 - adding 50 people - and we’re still absorbing and reaping the benefits from that growth," said CEO Christian Chabot. "That said, we’re still looking for great people and plan to hire as it makes sense for us. We’re seeing a lot of great resumes from people who have been laid off from other companies."
John Cook is co-founder and executive editor of TechFlash. He has been covering the technology beat for nearly a decade, writing about startups, entrepreneurs and venture capital, most recently serving as a reporter/blogger at the Seattle Post-Intelligencer.
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