13. Mahalo Downsizing Staff

Date: March 2, 2011 

Ten percent of Mahalo's staff was recently laid off and given the excuse that Google's new algorithm change forced the company to make cutbacks. Founder and CEO Jason Calacanis sent out a mass email to employees stating Google’s adjustments caused the "knowledge sharing service" to experience a "significant dip in traffic and revenue" the past few months. On the flip side, Calacanis indicated that Mahalo's biggest draw was still its online videos, which continue to perform strong on one of Google’s subsidiary sites, YouTube. How ironic.