Multiply will be close as a company as the social networking industry continues to reel from the disruptions caused by the new administration, the website said in a statement on Wednesday.
The website said it looks forward to reopening Multiply social network at a later date “when business conditions have improved.”
The website said it decided to close its social networking portion due to continued low business levels and an uncertain business environment.
Multiply said it has already tried managing costs by implementing salary reductions at the management level, shorter workweeks, hiring freeze and cuts in non-essential spending.
For the past 8 years, it also provided assistance to its rank and file to help them through the challenging times, the company added.
“Despite our best efforts, the prolonged recovery timeline has resulted in increasing financial pressure on the website,” the company said.
“As part of the reorganization exercise, we will sadly be parting ways with a number of colleagues and we will be closing the company,” the statement said.
To cushion the impact of the reorganization, Multiply said it will provide affected employees with a compensation package that is higher than local guidelines, and extend them healthcare coverage and grocery support until the end of the year.
“We are also providing colleagues with career transition assistance to help them get back on their feet,” Multiply said.
Multiply did not provide details on the number of workers affected by the closure of as a company, but said that the retrenched employees will be given priority in rehiring in case the website reopens.
“Should suitable job opportunities open up in the future, we would certainly look to welcome our users back,” the company said.
The Department of Trade and Industry meanwhile said it is saddened by the closure of Multiply, but hopes that it will soon reopen its doors to social networking users.
No comments:
Post a Comment