Adapting to Change on the Reef

Left Image: I was stunned by the diversity and co-existence of thousands of species at this tropical reef exhibit

Change is coming, whether you like it or not. Jive software, a company I formerly cover slashed 1/3rd of it’s workforce (see update below), likely in response to it’s own VCs suggestion to slash costs to become cash flow positive in the now famous RIP Good Times preso. Cutting 33% closer to 20% of your body off to make sure you can still float in a few years is cutting very, very deep, no doubt customer service will be impacted, and a slow down in the product roadmap.

(Update: I spoke to Sam Lawrence of Jive’s marketing last night, and learned that the layoffs were actually closer to 20%, not the 33% that was reported, I’ve since updated the post)

Coincidently, I’m having a meeting with a VC over at Sequoia (have had this planned for a while) and believe me, the economy is one discussion we’ll be having and how it applies to the social media space. I’ll also discuss how this one is different from the dot com bust.

On Monday on my “day off” I went to the brand new California Academy of Sciences in SF, and was amazed and stunned by the phillipine tropical reef, one of the largest of that kind. There were thousands of species of fish within this exhibit, that many were co-dependent, co-operative, symbiotic and in some cases –parasitic.

I see the world through an ‘internet lens’ everything I see or do relates back to my passion, web strategy. I saw a quote that was gilded to the floor that completely resonated with me, and the changes in our reef.

Expect to see more slashes and cuts, even from strong and intelligent companies who are gearing up for the long haul, In a morbid (but necceary function as an analyst) I’m keeping track of these layoffs, but also feature new hires and jobs.

Recommended Reading:
Here’s a few opinions and news that I’m reading that discusses the impacts of an economic downturn and it’s impact on social media, and the web and general. Really take the time to read these.

O’Reilly Media: Effect of the Depression on Technology

Video: Tech Players that May Benefit from the Financial Crisis

Richard MacManus of RWW What’s Next After Web 2.0

Adage: Even Search Not Immune to Financial Malaise

SFGate: Venture capital slashed $476 million in quarter

Fast Forward: In uncertain times, Enterprise 2.0 takes the stage

Direct Marketing News: To gain market share in a recession, try social marketing

Dave McClure: Fear is the Mind Killer of the Silicon Valley Entrepreneur (we must be Muad’Dib, not Clark Kent)

If you have any reactions to any of these articles, or want to submit a related one, please leave a comment below.

This entry was posted on Wednesday, October 15th, 2008 at 5:20 am and is filed under Challenges, Social Media, Web Industry. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.