DURHAM, N.C.-Mobile content provider Motricity Inc. will cut 50 jobs in a surprisingly drastic move to cut costs and “optimize the organization.”
Motricity, which offers both a content portfolio and content delivery technology, will release more than 16 percent of its full-time employees over the next two months.
The company had said in October that it would lay off fewer than 10 full-time positions.
While content aggregators have been increasingly squeezed as carriers strike deals directly with owners of licensed content, Motricity’s announcement is surprising. The company has added more than 200 employees in the past year, including July’s acquisition of GoldPocket Wireless, and continues to win deals with media giants and network operators.
“We are preparing for 2007, which will be a pivotal year for Motricity,” Chief Executive Officer Ryan Wuerch said in announcing the cuts. “These changes strengthen our organization and position us to take advantage of opportunities for further growth, innovation and leadership in the mobile industry.”
Just four months ago, Motricity closed a $60 million round of financing, pushing its overall funding past the $150 million mark since its 2001 founding.
