Dave Morin Laid Off 20 Percent of Path Employees Today
Dave Morin's social networking app Path laid off 13 employees today, which represents 20 percent of the company's staff. A spokesperson for the company confirmed the layoffs, saying, "We're working to realign the company to support continued innovation and Path 4.0."
In response to question about layoffs as a bad sign for a startup in growth mode, the Path spokesperson said, "It's just a realignment of the company. I wouldn't read anything into it. The business is strong we have 20 million users."
Valleywag heard that Path is still seeking a lead investor for a new round for capital for Morin's grand sticker distribution project, but at a $400 million valuation, not the $500 million valuation TechCrunch reported in July. The Path spokesperson declined to comment on fundraising as well as Path's precipitous drop-off in app rankings.
AppAnnie currently ranks Path no. 79 in the U.S. and that's just in the social networking category. That's a steep drop from its sudden springtime spike.
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