Jobfox has confirmed layoffs.
“Jobfox has trimmed seven sales representatives from its workforce to better meet 2009 expectations as a result of the slumping global economy,” said Barry Lawrence, Jobfox PR Director. “We feel fortunate that we have managed the growth of our business wisely so that we are not forced to trim, like many U.S. start-ups, by 30 percent or more. No further workforce adjustments are expected.”
They follow the lead set by the likes of LinkedIn to Jobster to a variety of employment-related players rumored to have slashed staff. It’s a list that’s sure to grow.
The question, of course, is whether or not such measures mean a business in peril or a business with enough vision and sense to prepare for the inevitable downturn. It could also mean both. Issues we’ve already covered and will likely continue to cover well into 2009.
December 1st, 2008 at 6:11 pm
I think it’s funny that the rest of the world calls it “layoff” and the PR guy at Jobfox calls it “trimming”. It seems odd that they would “trim” sales people. Isn’t it the sales people that bring in the business? So if they need to “trim” 7 from the workforce then they must not be selling.
Based on what I know about the product (we let our contract run out because it wasn’t getting any decent candidates) I am willing to bet that there will be more trimming in the future. In our opinion the product isn’t very user-friendly and it has yet to give us any quality candidates. Also, I have heard that they ARE in trouble.
I’m curious to know what other people think about this.
December 2nd, 2008 at 9:16 am
Is jobfox in trouble?
Is anyone safe is a better question.
I have been critical of jobfox in the past but I would like to stand up for them on a few points. I know many, many candidates that really stand by Jobfox and many, many recruiters and corps that have used and continue to use Jobfox with good - great results.
Please dont take the layoffs (which is what they are) out on the product or the sales people. The company is run poorly and the hitched their wagon to an idea and a sales model that didnt work. They should have had layoffs months ago.
There is no reason JF or any start up of that size needs 50 - 70 outside reps.
Barry has some spin in there…..
The anocnmt he rolled out is not 100% accurate - It does not take into account the managers who had to take lower level jobs and they talent that has resigned over the past 90 days which it much higher then the 7.
At the end of the day I feel Jobfox is a goood buy. Treat it like a stock…..buy low and use the heck out of it.
December 2nd, 2008 at 12:04 pm
The world is different today compared to the past (compared to even just a year ago). The constant march of technology makes it possible for a smaller work force to do virtually the same job as a larger workforce. As white collar employees are handed pink slips, an employer like JobFox, a bank or a brokerage may be prudent to generously retain their e-mail records. The records are a valuable asset to the employer, relating to intellectual property, project management, customer relationships and more. –Ben
December 2nd, 2008 at 2:14 pm
To “The Middle”:
You posted yesterday that Jobfox is in trouble and said, based on your inside information, that there would be 15-20 heads on the chopping block so I’m a bit confused to your question of whether or not they are in trouble. I don’t know the many, many candidates that stand by Jobfox but I do know several recruiters who aren’t renewing contracts due to lack of good candidate matches. That is the product, not the sales.
If your information is correct that Jobfox managers have had to take lower level jobs and talent has been forced out in the last 90 days it does mean Jobfox is in trouble. Other startups have been honest in saying they have had to layoff a percentage of their staff. Barry the PR guy saying that, unlike others, Jobfox has managed their growth wisely by only having to “trim” 7 employees is just an example of Rob McGovern’s arrogance.
Back in October in Jobfox’s blog Rob said that “we appear to be a long way” from a recession. He also said in a recent podcast that “Employers are still waiting to see if this is a short-term economic seizure in the market or a long-term trend”. Is Jobfox is the only company out there that is recession proof? I doubt it.
December 2nd, 2008 at 8:26 pm
It is worth noting that not every job board is losing money or laying off people. See http://www.collegerecruiter.com/pages/pressrelease10132008.php.
December 3rd, 2008 at 11:39 am
Amie,
I agree with what you said. I do not want to get into bashing products. You havae a view from a rec side. I have used it as both a rec and a candidate. Is JF the best product out there? no Does it have a place in the market, Yes. In a world with 40,000 job boards is JF in the top 10%? Yes
I think the lay offs are a direct reflection of the flawed go to market plan JF launched.
Robs ego made him launch in 11 cities with sales offices in each and 5 - 7 reps and a manager in each. Not to mention VPs at all levels and his addiction to collect developers like baseball cards.
As a compnay the revenue would be healthy if they had 50 - 70 employees and not 300 - 400 like they have/had now.
December 3rd, 2008 at 9:10 pm
Am I the only person tired of hearing anything from Steven Rothberg? Everything isn’t about you. And you put out a Press Release about hiring those 2? LOL. Water Color/Mixed Media Artist? That should work out.
Btw…hiring 2 reps is not worth a press release…small time.
December 3rd, 2008 at 11:44 pm
Really, an article about seven people from JobFox, but nothing about Jobing.com? They have laid off close to 100 people since January and Cheezhead has nothing? Must be really hoping for another free booth at National SHRM 2009 huh?
December 4th, 2008 at 9:50 am
really thats nothing compared to what my old team lead told me is about to happen tomorrow at another big board
December 4th, 2008 at 1:49 pm
I find it hard to believe that Jobfox has so wisely managed their growth and only has to layoff seven sales employees with no further workforce adjustments. The recruiting business is hurting as much or perhaps more than others (I don’t have a definitive count) and I am skeptical that as a startup job board companies are rushing to post openings that don’t exist. Yahoo and Google are having big layoffs and Adobe letting go 600 employees today because of “bad sales forecasts for the next two quarters” is evidence that when the big guys are hurting, everybody hurts. Jobfox is insinuating they are recession proof. I think this announcement made by Barry Lawrence will prove to be a very bad PR move by Jobfox.
Like “The Middle” said, there is a spin on this and when the truth comes out it will hurt Jobfox’s reputation enormously.
December 4th, 2008 at 2:06 pm
To “Really?”
The point of the jobfox layoff entry is not about 100s of layoffs - it’s the exact opposite. What it is saying is that Jobfox claims that ONLY 7 layoffs were necessary as opposed to the 100s that other job boards have had to layoff. There is no relation to what is happening at Jobing.com. When the time comes someone at Cheezhead will reveal the number of layoffs at Jobing.com. You can guarantee that.
December 4th, 2008 at 5:22 pm
Ok guys and girls…..
Bash, bash , bash…..it is fun but it is not a solution. Hiring managers and rects will not stop hiring. We will have open positions. Just because a company “cuts” does not mean they are not hiring. Take my work for it. You can cut 10 and hire ten in the same day. The thing that is odd with the Jobfox layoffs is that they fired sales people. What usually happens is you fire ops or support and staff up sales…..I think this was a mistake on the part of Jobfox.
We all have to be smart. If there is a silver lining in this it is the fact that we have millions of baby boomers retiring and Gen X, Y and Mel workers are a much smaller workforce.
We also have to be smart about spending our rect $’s.
There are 40,000 job boards and all of them want a piece of the budget.
CB,Monster and HJ are the big three and they are priced that way. There is a huge overlap in candidates between them.
What about the other guys? Jobfox, Climber, LinkedIn, etc…..give them a try but do a 90 day trial…..we might find some unique candidates in there.
What about the real other guys. SimplyHired, Indeed, Oodle….They help the big three drive traffic and in turn traffic to the jobs that are posted…..I am not sure if they sell direct but it might be an interesting idea.
Like the newspaper business that took rect money for years - we need to step out and be early on adopters and not sheeep. The clients should dictate what happens not the other way.
December 4th, 2008 at 6:48 pm
some maintenance guys are carrying up about 300 boxes for everyone to pack your stuff up in at 200 N. LaSalle St in Chicago tomorrow. Merry Xmas careerbuilder!
December 4th, 2008 at 11:03 pm
To Linda
That is great that Jobfox ONLY let go of 7 people and not the 100’s that others have. I got that, thanks. My jab was at Cheezhead for not blogging about Jobing.com and their mass layoffs that have been happening in waves since January.
December 8th, 2008 at 10:34 am
Jobfox just won’t stop it’s underhanded way of trying to get money. I got an email asking me to have my resume reviewed FREE by a “certified jobfox” resume writer. Of course there’s always a catch. Even before you get to the critique of your resume you get offered to
“Be sure to read the resume writing offer at the bottom of this email to find out how you can put our professional resume writers to work for you to create a resume that successfully showcases your value to employers!”
Keep reading down the page and see that fantastic offer costs $399.
I just don’t understand how Jobfox can offer ridiculous gimmicks like this and show their faces. It’s an insult.