Signs are popping up around the internet that things may not be all well in Linden Labs, as they seem to be undergoing some rather extensive layoffs.  While still very speculative and based on social networks, rumors, and scattered reports, the sum of this points to some rather depressing news.

Most or all of the team that engineered the Second Life Enterprise product was let go not long after it went into production.

Linden Lab’s country manager for Germany is gone (Germany is an important market, traditionally being Second Life’s second largest national market).

At this moment, our information is far from complete but it’s a pretty good bet that if you’re a part of the Lab”s market-development or business-development groups, you’re already clearing out your desk this week. Just how deep the cuts are going to go is uncertain at present. Apparently, it isn’t a good time to be a product evangelist on the Lab staff.

With any luck, this is just an unfortunate ‘trimming of the fat’ to create a leaner & better focused organization.  We’ll just have to wait and see.

via Linden Lab laying off staff, closing Singapore office – Massively.

UPDATE 3:30pm: New information on this care of New World Notes.

A Linden press release that just hit the press wires confirm the layoffs will be 30% of Linden Lab staff. The restructured company will focus on integrating Second Life with social networks (a move that’s been happening for some time), and creating “a browser-based virtual world experience, eliminating the need to download software”. That announcement has been long overdue. It’s only sad it comes with the job loss of so many talented people.

They also have a list of some of the people let go, including some well-known and well-loved Linden Lab celebrities.