Ecomom Lays Off Workers After CEO's Death - 8 News NOW

Ecomom Lays Off Workers After CEO's Death

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Ecomom CEO and co-founder Jody Sherman Ecomom CEO and co-founder Jody Sherman

LAS VEGAS -- Just days after one of the co-founders of startup tech company ecomom committed suicide, most of the company's Las Vegas employees were laid off, a former worker confirmed to 8 News Now.

Nineteen people were laid off from ecomom's Las Vegas headquarters, including about three executives, a second employee said.

The company employed 28 people located in Las Vegas, Charlottesville, Vir., Los Angeles and Guatemala. It is unclear the status of the employees working at the Guatemala office.

At the Las Vegas headquarters, four executives were kept on, but will take pay cuts and move to smaller offices, according to one of the laid-off employees. The current offices are located in the Holsum Bread building in downtown Las Vegas.

Three employees kept their jobs at the Virginia office and one stayed at the Los Angeles office.

Employees said the laid-off workers were told the company was in poor financial shape and would have shut down in three weeks had the cuts not been made.

One of the employees said there are mixed feelings about the layoffs. On one hand, the cuts were necessary because of the company's poor financial situation, the employee said, but there is also some bitterness and sadness.

"There is a lot of sadness," one employee said. "Losing him and to see the dream is over is another blow for all of us."

The employee said the executives who kept their jobs are the reason for the company's poor finances.

"This was not Jody's vision," the other employee said. "Our backbone was customer service and they are all gone."

In a statement released Thursday afternoon, ecomom co-founder Emily Blakeney and president Marcus Nucci said, "In light of this tragedy, the company is restructuring its workforce so that it can refocus efforts around its founding principles. This plan unfortunately includes eliminating a number of positions, which makes this week all that much more difficult."

The statement added that the Downtown Project, led by CEO Tony Hsieh, is assisting the laid-off workers in finding new jobs.

In an email accompanying the statement, Nucci said, "There are financial stressors on the business that we are confronting and along with the board of directors, the executive team is moving forward with plans to restructure the business so that it may continue to be a place parents can rely on."

Nucci said ecomom will remain open and keep its headquarters in Las Vegas.

Jody Sherman, 47, died early Monday morning. His death was ruled a suicide by the Clark County Coroner's Office.

The Ecomom Vegas family
FILE: The Ecomom Vegas family pose for a company photo in June 2012.

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