Company lays off 18% of staff in preparation for “very difficult economic environment in 2009”.
Domain Name Wire has confirmed that Los Angeles-based domain juggernaut Oversee.net is laying off employees today.
From what we’ve been told it’s in the DomainSponsor division, but the layoffs may be more widespread. We are waiting on comment from the company regarding the number of effected employees. [See Update] The layoffs come just two weeks before the company’s DOMAINfest conference in Los Angeles.
Mason Cole, Oversee.net VP of Communications, released the following statement to Domain Name Wire:
Oversee is reorganizing its businesses because it expects a very difficult economic environment in 2009. As part of the reorganization, we have had an 18% reduction in force, including some managers.
Oversee will focus over the next year in the areas where it has a leadership position. Going forward, areas of focus include: Domain name monetization, Domain name aftermarket, Registrar, and Travel.
Accordingly, we’ve discontinued activity or investment in areas that aren’t as promising (mortgage, for example). The reduction is a result of the refocusing on key areas.
In August Oversee.net laid off 10% of its employees across its divisions including DomainSponsor, SnapNames, and Moniker.
Since then the domain parking business has continued to deteriorate. Current revenue from domain parking cannot justify previous staffing levels at many domain parking companies. Other divisions of the company are also likely hurting, including NameKing. The previous layoffs occurred under the former company president Lawrence Ng. This is the first round of layoffs under new president Jeff Kupietzky.