Once the third largest social networking site, Hi5, is currently laying off a large number of its remaining employees. Justifying the reason for termination, President and CTO of the company, Alex St. John, explained the act is a result of technology migration. “In support of our market strategy to launch next generation social gaming platform by early next year, our operations team migrated the site infrastructure to the Windows Server OS…” Said Alex
Lately, Hi5 replaced its old servers and migrated to .Net framework from open source and Java technology. The reason being a new market strategy to launch its social gaming platform by early next year, Hi5 consolidated servers and replaced its site’s infrastructure with Windows Server OS. Alex said that the company achieved nearly 12:1 reduction in server and database requirements.
Further, Alex said “As we have recently turned the corner on our technology migration efforts we have been able to significantly reduce the number of positions required to support the older hi5 site and are in the process of re-organizing the company….” It is sad to see the massive lay off; however, an armor called technology always works.
Once placed third after Facebook and MySpace, Hi5 abruptly pivoted towards the gaming business. Today, Hi5 is a completely new yet established entity in gaming sector raising a new $14 million round last year.
Sources confirmed the departure of 28 employees. These employees were working on the site operations.