Pelago has reduced its headcount as the maker of the mobile social networking product Whrrl attempts to adjust to the lingering effects of the bad economy. The layoff comes exactly one year after the Seattle startup announced a $15 million venture round from notable investors such as T-Mobile, Kleiner Perkins Caufield & Byers, Bezos Expeditions and others.
Pelago issued a statement to TechFlash about the cuts, saying that it made a "modest staff reduction" in order to "provide the multiple years of runway this economic situation will likely require."
The company didn't say how many people were let go, though we've heard it was in the 20 percent range. At the time of funding last year, Pelago employed 40 people and had planned to double that number.
But the economic meltdown changed things for the company, which is led by former Amazon.com executive Jeff Holden.
"We believe this decision is best for the company’s long-term growth as we continue to build momentum from the recent launch of Whrrl v2.0," the company said. "We're also very thankful that we raised money when we did, as we have a very solid cash position. We're feeling great about our business and we have the time to grow and nurture it to its full potential."
Whrrl, which competes against Loopt and others, creates a mobile experience that allows friends to track the locations of one another and share experiences as they happen in real time. It was founded in 2006.
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