Follow us:

Brier Dudley's blog

Brier Dudley offers a critical look at technology and business issues affecting the Northwest.

October 22, 2008 at 2:09 PM

Seattle retail startup Mercent makes “prudent” layoffs

Mercent Chief Executive Eric Best took his foot off the accelerator and tapped the brakes.

On Monday the Seattle e-commerce services vendor laid off six of its nearly 50 employees.

Best, a former Amazon.com manager, said online retail is still expected to grow 12 percent this holiday season, compared with low single digit growth in offline retail, “but I look at this and think it’s prudent to take a cautious approach.”

(For an e-commerce indicator, see Amazon.com’s just-lowered earnings forecast, leading to a 14 percent after-hours drop in AMZN to nearly $43.)

Mercent still has plenty of cash, Best said. It’s been growing rapidly since receiving $6.5 million in funding last December, leading to 50 new customers using its platform.

Were investors calling for cost cuts? “Not particularly,” he said.

Retailers using Mercent are still getting good results, he said, “so this decision related to the Monday reduction in headcount was really more about ensuring we’re making the right decisions now to ensure the company is positioned well in the case that things really do get worse.”

Comments

COMMENTS

No personal attacks or insults, no hate speech, no profanity. Please keep the conversation civil and help us moderate this thread by reporting any abuse. See our Commenting FAQ.



The opinions expressed in reader comments are those of the author only, and do not reflect the opinions of The Seattle Times.


The Seattle Times

The door is closed, but it's not locked.

Take a minute to subscribe and continue to enjoy The Seattle Times for as little as 99 cents a week.

Subscription options ►

Already a subscriber?

We've got good news for you. Unlimited seattletimes.com content access is included with most subscriptions.

Subscriber login ►
The Seattle Times

To keep reading, you need a subscription upgrade.

We hope you have enjoyed your complimentary access. For unlimited seattletimes.com access, please upgrade your digital subscription.

Call customer service at 1.800.542.0820 for assistance with your upgrade or questions about your subscriber status.

The Seattle Times

To keep reading, you need a subscription.

We hope you have enjoyed your complimentary access. Subscribe now for unlimited access!

Subscription options ►

Already a subscriber?

We've got good news for you. Unlimited seattletimes.com content access is included with most subscriptions.

Activate Subscriber Account ►