ChaCha layoffs and cuts free haircuts and massages

Carmel-based startup ChaCha Search Inc. laid off eight of its full-time employees and trimmed interns. It also cut off the perks—like free haircuts and massages—that helped attract its top-notch talent.

ChaCha has also begun limiting the number of answers it gives away free. It’s a key change to ChaCha’s business model aimed at protecting its potential for solvency. But it also risks hobbling a company whose prospects are pinned on rapid growth.

“ Every startup company in this econom y should turn over every rock to find ways to cut costs,” said ChaCha cofounder Scott Jones. “For companies large and small, this is going to be a rough ride.”

Founded in September 2006, ChaCha bills itself as a human-assisted Internet search engine.

Source: IBJ