This story was written by David Kaplan.
Restaurant guide Zagat has laid off 19 staffers, or about 14 percent of its 130-person workforce, a company rep said, confirming an earlier tip to paidContent. The cuts, which were made across all departments, were blamed on the recession. At the beginning of the year, Zagat attempted to put itself up for sale, with the hope of netting $200 million. But six months later, after potential buyers balked at the price, Zagat had a change of heart and decided to take itself off the market. In 2000, the Zagat family sold off a third of its business, then valued at more than $100 million, to an investment group led by General Atlantic Partners, and including Kleiner, Perkins, Caufield & Byers and Allen & Company. After giving up on the sale last June, the company said it would focus on building up its online and mobile products, though those plans may also be scaled back as the downturn deepens.
By David Kaplan