BitTorrent Inc. had to let go of 12 of its 55 employees. This company that was founded by Bram Cohen, who also created the BitTorrent protocol, is well-known today for its µtorrent client.
Bram Cohen's online store which initially wanted to overhaul iTunes, quickly had to face imposing Torrent platforms such as The Pirate Bay and Mininova and was unable to compete because of DRM.
Indeed the main reasons presumed for these layoffs are the continuous money losses of its download store as well as the DRM issue. The latter has been a burning topic since the creation of the store because Web users are not too keen on DRM material and won't hesitate to resort to piracy if they cannot freely use and combine their legally downloaded content.
Besides the competition on the BitTorrent market is quite fierce and is bound to lead to even more job losses if companies do not adapt and take into account their users' current needs.
In that regards, many Web users are hoping that this unfortunate turn of events won't cause any trouble to the development of µtorrent and especially to the planned Mac Version even though it doesn't seem that it will.
Update: Following the rumors about the layoffs, BitTorrent Inc. denied the reasons floating around the Web and decided to bring some clarifications through the following statement: "yes, there are layoffs happening at BitTorrent, Inc. However, (...) these layoffs are not specific to one department, nor are they the result of a failed business plan with Best Buy. The BEN [BitTorrent Entertainment Network], SKD and DNA services will all still be here tomorrow, and so will their sales and marketing department."
Sources: TorrentFreak & Slyck