Internet rivals are following this general trend in the industry, he said, adding it's not a question of the firm being forced to cut back because of dwindling funds at its disposal.
I'm not buying that statement considering they were rumored to be spending $1M/month to generate $20M/month and have a $160M in backing.
It seems more likely the arbitrage crackdown at Google must've seriously impacted their revenue stream otherwise they would be hiring and growing, not firing and retreating to a better cash flow position.
Hard to be sure, but it's a good speculation based on all the June 1st arbitrage site closings [webmasterworld.com] and the uncanny timing of their layoff news.
[edited by: incrediBILL at 8:23 pm (utc) on May 30, 2007]