In a shocking blog entry today, Jeremy Flagstaff noted that the Electric Sheep Company has laid off approximately one-third of their staff, or about 22 people. It has been previously noted that ESC had to cut back on the number of islands for CSI: NY, and now both AOL Pointe and Pontiac are pulling out of Second Life. This news should come as no surprise, but it's still heartbreaking to hear that it happened so close to Christmas.
While it is not known at this time exactly why the layoffs occurred, Jeremy speculates that they will be focusing on technology like OnRez. Joel Greenberg, whose job status is unknown at this time, announced on Twitter that ESC is shutting down their virtual ad network project. In a prophetic blog entry written last week by Rez Menoptra, he speculated on how long builds will last in virtual worlds and who will remember them.
Massively will update you with the latest news on this topic as we hear it. Stay tuned!