Large Job Cuts for Motricity Rumoured

US based mobile content firm is reported to be preparing to reduce its workforce by as much as 200 people - representing around a third of the staff at the company. Motricity declined to comment on the report in the WRAL Local Tech Wire publication.

The company, which recently completed its acquisition of rival mobile content provider, InfoSpace for US$135 million is also thought to be considering moving its headquarters from Durham to Bellevue, Wash. as part of the consolidation of the two companies.

Following the InfoSpace acquisition, Ryan Wuerch remains as chairman and CEO of Motricity while Steve Elfman, former executive vice president of InfoSpace's mobile services business unit, has been named president and chief operating officer of Motricity.

Due to the acquisition, there is said to be considerable duplication and overlap between the staff job functions and rumours of the layoffs have been rife within the company for several weeks.

Motricity is privately owned - but considering a stock market floatation. The firm recently raised US$185 million from investors, including Motorola nemesis, Carl Ichan - and total funding is now said to top US$350 million.

Motricity says that its customer base now includes 11 of the top 13 carriers in North America including AT&T, Verizon Wireless, Sprint, T-Mobile, Bell Mobility, Tracfone and Alltel. Motricity's managed service infrastructure powers storefronts and communities for 9 of the top 13 carriers in North America and has generated over $1 billion of gross content sales to date.

On the web: WRAL Local Tech Wire

Posted to the site on 24th February 2008