• by Wendy Davis  @wendyndavis, October 17, 2005

Adware company 180solutions, currently facing a class-action lawsuit alleging non-consensual installations of its software, recently laid off 50 employees--or 20 percent of its workforce--the company confirmed late last week. The layoffs took place across all departments, said Sean Sundwall, director of corporate communications at 180solutions.

He added that the layoffs were part of a reorganization that will better position the company to focus on three core initiatives: its search assistant, search suite, and an automated platform for publishers. "We're confident this realignment will better position us to accomplish our long-term goal," he said in an e-mail to OnlineMediaDaily.

180solutions isn't the only adware company to struggle in the face of consumer backlash against pop-up ads. Rival company Direct Revenue--also facing a class-action lawsuit--recently laid off 40 staffers, or one-third of its workforce.

180solutions has made efforts to buff its public image lately. Just last week, the company announced that it no longer allows third parties to distribute 180solutions software through Active X, unless 180solutions itself controls the installer. In another measure to curtail drive-by installations, the company has brought litigation against former distributors.

180solutions also has cut off at least 500 distributors since the beginning of the year, and has implemented new procedures that make it harder to install software on consumers' computers without first displaying the license agreement that informs them that 180solutions will serve pop-up ads.