Is Classmates.com cutting staff? |
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Is Classmates.com cutting staff?
We've heard from two sources today that Classmates.com -- the Seattle-based social networking service -- has cut its staff. One source put the layoff number at as much as 25 percent of the workforce, but we have not been able to confirm that. Both sources said the layoffs occurred yesterday.
Representative at Classmates could not be reached for comment throughout the morning and early afternoon.
The parent company of Classmates, United Online, just announced earnings today for the third quarter, but I didn't see mention of the layoffs in the report.
United Online reported more than 700,000 gross pay account additions in the Classmates Media business during the third quarter. And the CEO touted those numbers.
"Our improved growth in net pay accounts reflects increased use of promotional pricing campaigns, which were successful in stimulating consumer interest in paid subscriptions in the current economic environment, as well as a decrease in pay account churn," noted CEO Mark Goldston in a press release out today.
The Classmates unit does appear to be growing, and Goldston offered bullish comments about the business in the press release today. So, I am not sure exactly what's going on.
Let me know if you hear more.
Based in Woodland Hills, Calif., United Online also operates the June, FTD.com and NetZero businesses. The company said it had revenue of $216 million and operating income of $32.7 million during the third quarter.
United Online has an earnings call scheduled for 2:30 p.m. today, so perhaps more will emerge then. (Update: A spokesman said that he may be able to share more details after that call).
Classmates, which operates an online directory of high school and college alumni and competes with the likes of Facebook, moved from its long-time home in Renton to the Seattle waterfront last year. At the time of that move, Classmates employed about 239 people. And the company said it had room to grow at the offices located at 333 Elliott Avenue West.
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