BitTorrent Cuts Half Its Team, Replaces CEO

BitTorrent Inc., The company, which develops technology for transferring media files over the Internet, cut an additional 20% of its team in August. The recent layoffs account for about 18 employees. Restructuring the company includes a new chief executive and a co-founder's departure.

Eric Klinker, who previously served as chief technology officer, has stepped into the CEO role. He replaces Douglas Walker, who took over the position a year ago. Mr. Klinker was also appointed to BitTorrent's board of directors.

The layoffs and management shakeup come a day after co-founder and President Ashwin Navin announced his resignation and intentions to focus on a new venture. Mr. Navin plans to partner with a group of other tech executives that includes YouTube co-founder Steve Chen. Mr. Navin said the group has secured a location in San Francisco that will serve as a sort of clubhouse for entrepreneurs. The location will offer meeting space, working space and a café-style common area for entrepreneurs to network.

BitTorrent's technology has faced legal questions for years. Based in San Francisco, the company was one of the early leaders in distributing videos online. Its software uses an open-source file-sharing protocol, designed in-house, to divide a film into pieces and send them to multiple sources. In turn, the sources work cooperatively to quickly reassemble video files on users' computers.

After a wave of copy infringement lawsuits by movie studios against file-sharing services, BitTorrent began working to legitimize its business and earned the trust of several big content providers like Warner Brothers, Paramount Pictures, MGM and 20th Century Fox, among others.

Mr. Navin, who remains on the company's board, said BitTorrent plans to go back to its roots and focus more on technology, rather than content deals. He declined to comment on the layoffs.

Founded in 2004, BitTorrent has raised $45.75 million from investors including Accel Partners, DCM and Duff Ackerman & Goodrich.

Sources :

The Wall Street Journal: BitTorrent Cuts Half Its Team, Replaces CEO, November 7, 2008, 8:47 P.M. ET

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