Leadpages Downsizes Staff And Becomes Profitable

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It’s learned that Leadpages laid off a sizeable chunk of their employee base last month.  As further proof that one company buying another doesn’t inherently result in a bigger crew, sometimes the ship simply needs more refined skill sets than sheer hands on deck.

John Tedesco took over as Leadpages/Drip CEO on August 1, 2017 replacing cofounder Clay Collins and had this to say about the development:

“When I became CEO in August, we evaluated every aspect of the business. We concluded that some areas were over-invested in and some were under-invested in, relative to their market opportunities. As such, we reassigned a number of people internally but, unfortunately, had to let go of about 15% of our team (24 individuals) at the end of September across all functions. With 130 people on rightsized and focused teams, we are now profitable and well positioned for healthy growth.”

 

Cost cutting overhead is one method of increasing margins and profits; in the summer of 2016, Leadpages peaked headcount with approximately 175 employees before letting go of 22 at the time.

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Comments

  • Darren Cox

    What a surprise; another founder ousted by a man experienced in being a hired-gun, investor-hatchet-man. I predict lead-pages will now head into a long decline like nearly every other local business that craps on the founders who got them to where they are today.

    Furthermore, when is TECHdotMN going to start recognizing and reporting on the local epidemic of discarded founders, strewn about like garbage. While we spend an inordinate amount of time patting ourselves on the back about our start-up community, it seems that nobody ever talks about what happens to the founders of those companies once they show even a modicum of success.

    • http://tech.mn Jeff Pesek

      I’m not following…

    • http://leadpages.net/ BobTheTeacher Jenkins

      Hey Darren – I’m part of the Leadpages team (since 2014, customer since 2012). Although I don’t officially speak for the company, I’d love to share a few key points to clarify assumptions you’re making in this particular instance.

      The Leadpages transitioning from Co-Founder CEO to a new CEO was fully explained by Clay and our team here: https://www.leadpages.net/blog/john-tedesco-ceo-leadpages/

      Clay was by no mean ousted/discarded. 5 years ago he started Leadpages with a team of 2 people. I think it’s awesome (and rare) for him to recognize where his best skillsets are to help the company, and where others’ genius is better to grow the company in a new phase.

      John Tedesco has been a member of the Leadpages team for about 3 years. He is by no means a “hired-gun, investor-hatchet-man. He’s been our Chief Operating Officer for quite some time. If you look at his LinkedIn profile, you’ll see he’s been heavily involved in advising, mentoring, and scaling Twin Cities Startups for some time (including SportsEngine, When I Work, and now Leadpages). https://www.linkedin.com/in/johntedescojr/

      • http://tech.mn Jeff Pesek

        1) That explanation is consistent with my understanding and reporting over time.

        2) “… local epidemic of discarded founders, strewn about like garbage.” – OK Darren, other than the well documented Retrace Health situation, what other local examples are you referencing from the past few years that cumulatively represent an epidemic?

    • Daren Cotter

      Darren, I can appreciate your passion for the topic, especially considering your past experiences as an entrepreneur. But, you’re way off base here.

      Clay has (very publicly) spoken about his reasons for stepping aside. Why not take his comments at face value instead of assuming there’s some deeper conspiracy? Be careful about confirmation bias… not every Founder who exits their VC-backed company does so for the same reasons you experienced.

      I’d love to learn more about your experiences that lead you to say “the local epidemic of discarded founders, strewn about like garbage.” Other than one prominent recent example — which was both discussed publicly at Casey Allen’s Enterprise Rising conference as well as covered on Tech.mn — I am not aware of any pattern. Can we have coffee so I can learn more?

      Lastly, to any Founders reading this and wondering if VC is the right path for their company — I’d be happy to have coffee with you and share my perspective.

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