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Layoffs hit Bluetooth headset maker Aliph

The maker of the Jawbone headset is the latest victim of the economic downturn.

Erica Ogg Former Staff writer, CNET News
Erica Ogg is a CNET News reporter who covers Apple, HP, Dell, and other PC makers, as well as the consumer electronics industry. She's also one of the hosts of CNET News' Daily Podcast. In her non-work life, she's a history geek, a loyal Dodgers fan, and a mac-and-cheese connoisseur.
Erica Ogg

The layoffs across the tech sector are hitting companies large and small.

The maker of the popular Jawbone Bluetooth headset has let several employees go, citing the economy as one of the main reasons.

Aliph Jawbone
Aliph

"Given the current economic climate and opportunities we have to more efficiently bring products to market, we are realigning our resources to increase focus on our core technology and products. As part of this effort, we have eliminated a number of positions in the organization," an Aliph spokesperson confirmed to CNET News Friday.

The spokesperson declined to say how many or from which departments those positions came, but a source tells us the company let go approximately 25 people, or 30 percent to 33 percent of the staff.

Bluetooth headsets saw a spike in sales over the summer, at least in California, following the state's new law barring talking on a cell phone while driving. The law allows for the use of earpieces and Bluetooth devices instead.

However, Aliph is funded by Sequoia Capital, the Silicon Valley VC firm that recently told all of its portfolio companies earlier this month to buckle down and tighten their finances if they wanted to survive the current economic downturn.

Aliph is based in San Francisco, and is also funded by Khosla Ventures.