Domain registrar Tucows announced today that it is laying off approximately 15% of its staff, one day after announcing earnings with a small loss for the third quarter. Tucows CEO Elliot Noss blogged about the tough decision:
We decided to take this step because of the uncertainty of overall economic conditions and the fact that our performance has been impacted by a number of unanticipated challenges during the first nine months of the year, including advertising revenues being dampened by the weakness in the economy and by reduced payouts to the domain channel by Google and Yahoo, which is in turn impacting domain portfolio advertising revenues and especially bulk domain portfolio sales.
Sounds like another case of a smart company being proactive in today's economy. While Tucows is hardly a startup, the decision to cut costs and focus on efficiency will bode well for all companies doing business on the Web. It may be the only way to avoid Techcrunch's Death Spiral.