Internet

OnLive trims a third of workforce

The network software maker will lay off 23 of 70 employees as part of a corporate restructuring.

OnLive Technologies is laying off 23 of 70 employees--one-third of its workforce--as part of a corporate restructuring, chief executive Betsy Pace told CNET's NEWS.COM today.

Responding to email rumors of the layoffs, Pace said they stemmed from refocusing the company to the business rather than the consumer and entertainment market. The privately held start-up, founded in January 1994, includes financial backing from Kleiner, Perkins, Caufield & Byers, Intel, and Softbank.

The company offers text, audio, and data collaboration server software that lets groups communicate over intranets or the Internet. It is displaying some products at this week's Netscape DevEdge conference in San Jose, California. One product called OnLive Traveler, a "3D virtual world client," lets users have live voice conversations with groups in a 3D environment.

Pace, who previously held management posts at Paramount Interactive and Apple Computer, said the layoffs will be companywide but not include any engineers.

She said the company has enough money in its coffers to expand but needs to be prudent about its spending.