Paul Allen's Vulcan readying for layoffs, staffer says he's nervous |
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Paul Allen's Vulcan readying for layoffs, staffer says he's nervous
Allen in a recent photo shoot at the Seattle headquarters of his Vulcan Inc. investment company. (Dan Schlatter/Puget Sound Business Journal)
Things must be really bad out there. Even one of the world's richest men is cutting back. We're hearing that Vulcan -- the private investment firm of Microsoft co-founder Paul Allen -- is planning layoffs as soon as tomorrow.
"The atmosphere is very nervous, a lot of gallows humor," said one employee who fears that his job may be lost. The employee, who asked that his name not be used, said he was told by a manager to expect job cuts tomorrow. Vulcan spokesman David Postman declined to comment on the specifics of that rumor.
However, he said, "as a lot of people are doing, we have to make adjustments to what is going on in the world as well." Postman later said he couldn't comment on anything that "might happen." Vulcan employs more than 600 people, including staffers who oversee the billionaire's personal investments, the foundation and real estate holdings.
About two months ago, the company eliminated about a dozen staffers in the private equity group. Postman said those cuts were tied to a restructuring of the investment strategy rather than the general economic situation.
Allen's sports teams -- including the Seattle Seahawks and Portland Trailblazers -- as we all as the Experience Music Project and Allen Institute for Brain Science are separate entities not included in the Vulcan numbers.
A college drop out who founded Microsoft with Bill Gates in 1975, Allen ranked as the 41st richest person in the world with a net worth of $16 billion, according to a May 2008 report in Forbes. Obviously, that fortune has shrunk in recent months as the global economic crisis expands.
Allen, one of Seattle's biggest philanthropists, today announced changes in the way his family's foundation distributes money to non-profits. It plans to hold spending steady at 2008 levels, which were down substantially over the previous year. Also, the foundation does not plan to provide as many long-term grants, said Postman.
Allen's stake in Charter Communications also is causing problems, with The New York Times reporting that the money-losing cable company is facing a $21 billion debt load and could be forced into bankruptcy.
It is unclear what impact the layoffs will have on Allen's investments in technology startups. Allen uses some of his personal fortune to invest in emerging technologies, including local companies such as Evri, Redfin and Digeo.
UPDATE: Vulcan today confirmed that they are cutting about 50 employees.
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