Why Seesmic's layoffs don't mean what you think they do
Seesmic has laid off 7 employees — a third of its staff. Never heard of Seesmic? You must be doing something right with your life. The startup was ridiculous from its very conception as a tool for embedding videos as comments on blogs. Only to people who spend all day reading and commenting on blogs did that sound like a good idea. But that's exactly the kind of people Loic Le Meur attracted to himself — the groupthinking commentards of Silicon Valley, a self-appointed A-list of the blogosphere. To anyone conducting serious business, Le Meur's bloggy pals were an A-list, all right — "A" as in "avoid." Predictably, Le Meur and his investors — a group which includes Michael Arrington, a frequent promoter of Seesmic on his TechCrunch blog — are spinning the layoffs as a result of the recent economic unpleasantness.Nonsense. Seesmic wasn't just a bad idea; we hear from insiders; it was poorly executed, to boot. The company was in the midst of a top-to-bottom rewrite of its code. In the Seesmic video in which Le Meur announced the layoffs, he alluded to cuts in engineering — people "working behind the scenes" on the product. What that tells me: Le Meur has given up on this horrendous waste of time and effort, and is just biding his time until he can offload it on someone. He has a good track record of doing that; Six Apart, whispers have it, regrets spending the money it paid for Le Meur's Ublog, a French blogging service. Unfortunately for Le Meur, these are less bubbly times. Will the $6 million he raised in Seesmic's last round see it through next year without an acquisition? That's the only way in which Seesmic's fate is connected with the real economy: The suckers who would normally pony up for Le Meur's latest overpuffed adventure are hiding under their desks. Buying Seesmic is just another disaster they can put on their A-for-"avoid"-list.