NY BUSINESS, Nov 8th — Spring Street Networks has reduced its staff by almost half to 12 employees to stem losses. The board has also removed chief executive Louis Kanganis. Spring Street runs personals for The Village Voice. Mr. Griscom wouldn’t comment on speculation that the company is up for sale.
Surprising news. I’d say Spring Street is operating a wonderful service consider it only has 12-24 employees. Apparently, they have 2 million registered profiles in their database. So I wonder how come they cannot feed even 24 mouths?
Any ideas? Are the top execs paid mega money?
2 million registered users = 200,000 paying users since inception (maybe). Each user might have stayed 2-3 months. The service is pretty basic compared to other services. The content rocks on Nerve.com and TheOnion.com etc though, so perhaps my numbers are off. So, not sure, in short. Seems like they’re just tightening their belts. Customer acquisition costs are rising. Retention is shortening. Competiton is rife. They’re feeling the pinch it seems.