Amongst online social networks, Hi5 is among the largest. But the recent financial turmoil worldwide are probably the cause for them cutting back to lay off around 10 – 15 percent of their employees, although the management has said this is a ‘reconstructing’ move and they are also hiring people simultaneously.

On their blog they have written of positive press coverage of their business:

“During a down economy, things are looking up for hi5. Today hi5 was featured in Fortune.com, soon to arrive on newsstands.”

It is being said that the company has affected the cuts mainly in HR, QA and Design. Mike Trigg, the Vice President of Marketing, has been the one confirming the news by saying:

“We did a restructuring this week. We did let a few people go, but we are also hiring people. The world changed for everybody dramatically last week. We are focused on growing our business. We have great momentum.”

According to him, seeing Hi5 in the same league as other start-ups cutting back in order to survive longer is not fair. He added there are openings that they are trying to fill in, so effectively, that by the end of it, the head count will only get bigger.