Layoffs at Veoh, or not?

Tech gossip blog Valleywag reports that the video-sharing site had laid off 40 percent of its workforce, a charge the company denies.

There seems to be some disagreement over the financial health of Veoh.

The online video-sharing site allegedly laid off 40 percent of its 110-person workforce, according to tech gossip blog Valleywag, which on Monday credited "an online-video industry insider" with the tip.

However, a representative for the company told CNET News that the report was false.

"I have no idea where their sourcing is coming from," spokesperson Gaude Paez said Monday, adding that she was disappointed Valleywag didn't contact the company for comment. "Everyone who was employed here Friday was employed here today, and will be tomorrow."

Veoh had eliminated 15 to 18 jobs based in St. Petersburg, Russia, and was in the process of transferring the jobs to the U.S., Paez said. Paez also told NewTeeVee that a rumor posted to that site saying Veoh would be "$20 million in the hole" at the end of the year was untrue.

The company announced in June that it has received another round of funding , this time for $30 million, from such new backers as Intel and Adobe Systems. Previous investors include Goldman Sachs and former Disney CEO Michael Eisner. The investment brought the company's total money raised to $70 million, giving the video-sharing site a valuation of about $120 million.

However, Veoh, which competes with YouTube and Hulu, hasn't managed to break out of the pack of also-ran video sites.

 

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