I looks like is the perfect time to trim the fat and to get rid of the unwanted from your company since you can always blame the economy. I don't mean to pick on CarDomain exclusively (I should pick on more startups), but the real reason of the layoffs is not the downturn of the economy, although that might have been the tipping point.
The real reason is a failure to maintain traction with the customer base. The numbers don't lie:
I'm the Co-founder & CTO of 
