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kajeet layoff rumors fly, and we get the straight story

Last week, we caught wind — via a comment left here regarding some trimming of kajeet’s staff. Of course, this source wasn’t confirmed. The numbers actually seemed quite large — the commenter said that 40 percent of the staff had been canned. That’s quite large, even for a smaller operation like kajeet. A quick news search brought no confirmation on the matter. So we went to the horse’s mouth: CEO Daniel Neal. He was kind enough to address this issue.

Neal says that yes, it is true that they have laid off some staff — but the 40 percent figure is greatly exaggerated. More accurately, Neal says that it was about 19 percent of positions, bringing the company down to about 65 employees.

“You want to raise money when you have it, not when you need it,” said Neal. “When you’re a smart and well-managed company, you always have to keep your mind on how your cost structure is evolving. We are very careful with our cash.”

He did mention that many companies do this. Rather than waiting for needs to arise, they stick to their guns and keep things in order while times are good. This can help stave off problems down the road.

Rumors further speculated that kajeet’s CMO was part of the layoffs, but Neal says that is not the case. He left his position two or three weeks before these layoffs occurred, to pursue other interests. So he was not part of this at all.

As for kajeet, they’re still going strong. While their numbers aren’t publicly available, Neal said they had a very strong Christmas season, and saw a considerable increase in their number of subscribers. Makes sense. Plenty of kids want cell phones for Christmas, and kajeet is ripe for that market.

Thanks to Daniel Neal for speaking with us to clear the air on this topic. We’re glad to hear that kajeet is continuing to do well.