October 22nd, 2008

Perdew Says RotoHog Layoffs Part of Focus Shift

Wednesday, October 22nd, 2008

RotoHog CEO Kelly Perdew has confirmed that the company recently laid off somewhere “in the 20 percent range” of its staff, as previously reported right here.

Rather than a signal of financial trouble, though, Perdew told FSB.com that the decision came out of ”a few weeks of planning and figuring out what makes sense for our business.” He says that a stronger focus on the company’s business-to-business operations is what RotoHog has determined makes sense going forward.

“We were very much going down the path of two different business models,” Perdew said, referring to the split focus of delivering products to business customers as well as straight to consumers via RotoHog.com. He said that the singular focus offers the “highest likelihood of reaching profitability as soon as possible.”

The change means the company will focus more on building games and selling its technology to fantasy providers. The NBA, for example, will run two RotoHog-powered games through the league website this season. Less attention, in turn, will be paid to the company’s site, which hosts its own games. Perdew says that RotoHog will continue to deliver content through the site but will use the portal more as a technology testing ground on which to find out what works and what needs to change within its game technology.

Perdew said that there won’t be much of a focus on developing anything “overly creative” for RotoHog.com, which is why the layoffs came mostly in the area of content creation.

“It wasn’t a comment on performance,” he said.

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