Source: OnLive losing 'at least 50 percent of staff,' purchased by unknown third-part

[DP ServBot]

OnLive let go "at least 50 percent" of its staff today, Engadget learned, and the company was purchased by an unknown third-party. A former employee confirmed layoff reports that popped up earlier this afternoon and recounted the events that led to today's firings.

A meeting held this morning by CEO Steve Perlman informed employees that "at least 50 percent of the staff" were to be cut, effective as of 4PM PST today. Employees affected in the layoffs are said to have not been offered severance.

Moreover, OnLive was purchased by an unknown third-party, and an unknown amount of employees will be offered jobs at the newly formed company. It's unclear why OnLive is suddenly shedding so many employees, but the former employee pointed out monthly operating costs of approximately $5 million as at least part of the reason.

For its part, OnLive isn't confirming any layoffs. "We don't respond to rumors, but of course not," a company rep told Joystiq earlier today regarding reports that the company's entire staff was laid off. Reps wouldn't confirm whether other layoffs have occurred.

Vizio's Co-Star player is the latest product featuring OnLive - it's unclear how, if at all, it will be affected by today's layoffs, not to mention the purchase of OnLive by a third-party.Source: OnLive losing 'at least 50 percent of staff,' purchased by unknown third-party originally appeared on Joystiq on Fri, 17 Aug 2012 17:46:00 EST. Please see our terms for use of feeds.

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[The 1 2 P]

In this link it says that almost all employess were let go beside for a small amount left behind to continue running the business. But ultimately it appears the company company as a whole is no longer and tgoing to exist(as Online) and that various parts of teh business are being acquired by a third party to be reused in some other way. I'm sure we'll learn more in the next few days but I'm honestly not surprised. This also would have probably happened to Gaikai had Sony not purchased them.