Dwango Slashes Workforce

The Seattle based mobile content provide, Dwango Wireless has announced that it is slashing its workforce by 30% in an effort to cut the cost base by approximately US$1.5 million per year. The company will incur severance costs of approximately US$34,000 in the third quarter ending September 30, 2005, in connection with this action.

Dwango says that it plans to focus on the successful introduction of premium lifestyle and affiliate brands for the wireless arena. By sharpening its focus on high potential products and services, Dwango will focus its efforts on brands such as Rolling Stone, Napster, Playboy and premium messaging initiatives such as the recent USA TODAY 'TEXT & WIN' Mobile Sweepstakes Program.

Back in August, the company reported a fall in quarterly income from US$1 million in Q1 to US$885,000 in Q2 - along with a loss of US$5.5 million. The company also lost its CEO, Rick Hennessey following the results announcement. In August, the company had 77 staff and had expected to hire a further 15 by the end of this year."

Posted to the site on 3rd October 2005