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The Sugar daddy fires 9 sugar daughters!

Sugar daddy is gonna lay off 9 of his sugar sweety daughters. Yeah, the time is bad now, as after a few turns of the world’s economy crisis. Ad sales are bad! Bad? No, they just don’t improve!

Okay, it’s Brian Sugar the founder of the San Francisco-based blog network Sugar Inc. which runs a few of your favorite blogs such as GeekSugar, PopSugar etc (as long as ending with sugar!!), had decided to lay off a couple of their editorial staff. Actually, there are now nine of them in list.

And expected more to come! Simply for one reason, ad sales are not improving. Which I guess the company had overestimated there would be “exponential” or more lucrative growth in ad sales, so they increased more man power, more bloggers to blast more interesting stuff to the public. Sadly, it turned out to be the ad sales can’t sustain the overhead and human costs of the company!

Brian Sugar, cofounder of San Francisco-based blog network Sugar Inc., sent two ominous Twitters this afternoon: “Sad day.” “First rain, will last for 5 months.” Was he just talking about the weather? Less than an hour later, he’d gathered his staff into a conference room and told them he was laying off nine employees, mostly in editorial — 11 percent of the company’s 80-person staff. What’s worse: More layoffs could come over the next two quarters, if ad sales don’t improve.

Sugar’s CEO may have aimed to put employees on notice, in hopes of motivating them to perform. But leaving a shoe to drop is the worst mistake one can make in cutting employees, the meltdown’s self-appointed layoff pundits agree. Sugar Inc.’s real problem may be self-inflicted: It took ad sales in-house from partner and investor NBC this summer, leaving it with a sales force still in development, right as the online-advertising market got a lot tougher.


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