Home > News > IBill Lays Off About 50 Employees, Sources Say • Bookmark   • Newsletters   • Register Search Options

NEWS STORY

IBill Lays Off About 50 Employees, Sources Say

IBill Lays Off About 50 Employees, Sources Say
Get XBIZ News
Oct 13, 2004 12:17 PM PDT    Text size: 
DEERFIELD BEACH, Fla. — Widespread Internet rumblings were confirmed today, indicating that the beleagured payment processor has indeed let go employees from multiple departments and that the firings were caused by iBill's recent financial troubles with its former credit card processor First Data.

Internet payment processor iBill fired about 50 employees yesterday across a wide variety of departments, sources within the company confirmed for XBiz Wednesday.

Included in the layoffs was the woman who posted the Commerce Management Interface updates regarding the current state of delinquent payments caused by iBill’s recent financial woes.

Word of the firings began to spread around adult webmaster forums on Tuesday evening.

One user, who said he was one of the iBill employees that was let go, posted on GoFuckYourself.com that about 50 people had been let go from the company and that severance pay and retirement benefits for the former employees was in question.

“Please understand that there are only 45 employees left,” wrote the poster. “The customer service [department] is mainly temps.”

“Yes, we are concerned about the 401k money that was not paid since July,” the poster wrote. “And, yes, we are concerned if a paycheck is coming in the mail (“In the mail”… how many times was I scripted to say that?) along with untaken vacation pay.”

Calls made by XBiz to iBill officials were not returned and calls made to the sales department were routed to a terminated employee’s voicemail.

The firings come less than a week after a risk-assessment analyst posted on the XBiz boards regarding the poor management conditions that may have led to iBill’s current problems.

“It appears indeed that iBill was relying on future sales to pay previous obligations, such as webmaster payouts, while current webmaster revenue was used for operating costs,” posted Grant L. Hutchison, chief security officer for Militis Intelligence Corp, suggesting that iBill was effectively living “paycheck-to-paycheck” instead of holding funds in reserve.

“[This is] a practice any risk-assessment team would have found inappropriate at best, with reasonable grounds,” Hutchison said. “It led to iBill defaulting on webmaster payments as early as mid-September.

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !

PROFILES & BIOS

WIA Profile: Kate Hodgson-Egan

Each month, industry news media organization XBIZ spotlights the career accomplishments and outstanding contributions of Women in Adult. WIA profiles offer an intimate look at the professional lives of... More »

Q&A: Holiday Products Founder Moe Levy Reflects on Decades of Career Accomplishments

Born and raised in the Bronx, N.Y., as an only child, Moe Levy learned to become business savvy at an early age from his parents. Even more importantly, Levy says his parents instilled in him their people-oriented... More »

AWSummit’s Alexandru Gheorghe Has Eyes Set on Growth

The AWSummit has quickly made its mark and has become a top draw for chat hosts, studios and cam sites from all over the world. Founded by CEO Alexandru Gheorghe just two years ago, the cam-centric AW... More »
XBIZ NEWSLETTERS
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.






POPULAR PRODUCTS & SERVICES
Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Subscribe to XBIZ World magazine, the industry's leading e-commerce trade publication, delivering in-depth coverage of the online, mobile and ancillary digital markets.

UPCOMING EVENTS

XBIZ 2017

Jan 09 - Jan 13
Hollywood, CA

XBIZ Awards 2017

Jan 12 - Jan 12
Los Angeles, CA

ANME Founders Show

Jan 14 - Jan 15
Los Angeles Marriott Burbank Airport

Everything To Do With Sex Show

Jan 20 - Jan 22
Montréal, Québec
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!