In what looks like an effort to confirm every bad cliché about private equity funds, it seems that one of the first thing Summit Partners is doing (via portfolio company AFCV Holdings) after buying Answers.com for $127 million is firing the majority of the people. 45 out of 65 employees out of the company’s offices in Israel were fired, and it seems that some of the 25 jobs in the US are in jeopardy as well. Answers.com also plans to discontinue features and mobile apps.
There may be a good way to look at this, but it’s hard to see. Maybe there’s a grand strategic plan to get Answers.com in a whole new direction and that requires firing the previous team. But what it looks like is milking the company for the cash that comes from all that SEO traffic.
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.