Sermo has nixed its financial services offering, cutting headcount sharply as a result, and is doubling down on its pharma business.
Xconomy reported in December that Sermo laid off 30—nearly half of its staff. CEO Daniel Palestrant did not affirm that number but confirmed layoffs.
“When we looked at where the growth was, we decided pharmas are adapting quicker than financial services and are obviously a bigger market. We took a headcount reduction rather than accept more money,” he said.
Growth in the startup’s pharma roster has enabled Sermo to add back some staff. He said the firm will reach profitability in 2010.