• January 7, 2009

Widget network Clearspring Technologies has laid off an undisclosed number of employees as a result of the economic downturn.

"In the fourth quarter of 2008, we reduced our workforce to focus on key growth markets and concentrate development efforts around core products and services," wrote Clearspring CEO Hooman Radfar, in a post on the company's blog Monday. "We are confident that this move positions us with ample runway to grow our business in 2009."

He noted that widgets distributed by Clearspring reach more than 400 million unique users worldwide and that the company works with more than 200 media companies and agencies. Clearspring is not lacking for funding. It's raised a total of $35 million in venture backing to date, including an $18 million round last May. Even so, startups are under pressure from venture investors to keep costs down to weather the recession.

Radfar did not reply to a media inquiry Tuesday. A Clearspring spokesperson declined to comment on the extent of layoffs at the company.--Mark Walsh