With Facebook set to go public this spring, the layoffs could be indicative of a forthcoming drought in private equity. Just yesterday, reports began to surface that Facebook would this week halt secondary-market trading, a move that will weigh heavily on SecondMarket
While Facebook isn't the only company trading on SecondMarket, the market for tech IPOs is dwindling rapidly. Zynga has already begun trading publicly and outside of Twitter, few tech companies are yet mature enough for the sorts of trades popular on SecondMarket.
SecondMarket indicated recently plans to buttress a lack of tech IPOs with a move into regional and community banks. It appears, however, that the transition won't happen fast enough to save its staff.
SecondMarket representatives were not immediately available for comment.