OnLive lays off 50% of staff, spins off into new company

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OnLive lays off 50% of staff, spins off into new company

Times were once okay for cloud game service and console OnLive, but late last week, it underwent a major restructuring that could spell trouble. The company didn’t divulge many details, but half of the OnLive staff was laid off with the promise that some of them might be hired back under the new, yet unnamed venture.

According to the statement, OnLive, Inc. is now a new company “backed by substantial funding” – enough funding to hire “a large percentage of OnLive, Inc.’s staff across all departments.” Furthermore, there are plans to “hire substantially more people, including additional OnLive employees.” The statement also said that its various plans for the future, including “products and services” that are still in development, will be unaffected by the spin off.

The statement doesn’t address how many employees were affected by today’s news. Reports from former employees put the layoff numbers at 50 percent or more of OnLive’s total staff.

When asked whether CEO Steve Perlman was still heading the company, an OnLive rep confirmed that the company’s management team “remains intact.”

Via