YouSendIt lays off 14 of 70 employees The cheery stock photos on YouSendIt's sleek website send a signal: We're all business. The four-year-old file-transfer service has been trying to reinvent itself as a corporate "content-delivery solution," without much success. The company has laid off 20 percent of its 70-person U.S. workforce, as well as slashing its ranks of overseas developers, a tipster tells us. The company's VP of marketing has also vanished from the website's executive bios page . We can't wait for the memo from CEO Ivan Koon telling employees how troubled times require stern decisions. What Koon will almost certainly not say:

  • That the company has already lost two of its three founders, with the last one, Ranjith Kumaran, in a do-nothing CTO job with no one reporting to him.
  • That the company's $14.5 million in venture-capital funding is running out fast.
  • That the company's big showcase deal with the city of Los Angeles has generated publicity but very little in revenue, since it was struck at the ridiculously low rate of $1 per employee per year.
  • That YouSendIt should never have grown to 70 employees in the first place.
YouSendIt is a perfect example of the layoff lie : A desperately mismanaged company using economic fears to mask the fact that its business would be in deep trouble, in good times or bad.