Thumbplay, a New York-based mobile entertainment company, said today it is trimming its workforce for what they are expecting to be a prolonged economic downturn. Thumbplay wouldn’t specify how many employees would be let go, but confirmed it was much lower than the 25 percent reported by Silicon Alley Insider. A spokesperson said the total number of employees is under 100 employees.
In an emailed statement, CEO Are Traasdahl said: “Today, we informed members of our team about reductions in our staff. While difficult, these personnel decisions recognize the realities of the economy. This is preparation for what all indicators show will be a prolonged economic downturn. Thumbplay, like every responsible company out there right now, is preparing against future risk.”
Trassdahl said 2008 is on track to be a strong year, with revenues expected to grow by more than 50 percent. Even by conservative estimates, he said next year will also deliver growth. The company is in a difficult position in the mobile content industry, where it is forced to either market directly to consumers, which can be costly, or to partner with carriers and share revenues. In March, the company announced it raised $18 million in venture capital. Thumbplay also has a number of high-profile partnerships, including deals with Cellular South, Comcast (NSDQ: CMCSA), MTV, AOL (NYSE: TWX), MSN, and has relationships with the four major record labels.