Struggling MOD Systems places employees on leave

MOD’s kiosk technology

MOD Systems has placed a number of its employees on leave as the Seattle maker of digital media kiosk technology continues to look for cash. Anthony Bay, the former Microsoft manager who leads MOD, confirmed the decision with GeekWire.

“I can confirm that a number of employees were furloughed while the current financing is completed, and that there is no impact on our servicing of our existing kiosk locations,” Bay said in a statement. He declined to offer specific details.

A source tells us that most of the employees were put on a two-week leave.

MOD has encountered troubles in the past, and just last December cut staff by 35 percent.

At the time of that decision, Bay wrote in a blog post that they needed to streamline operations in order to preserve cash. That layoff came just two months after the company raised $6 million from existing investors. At the time, the company noted that it was entering an aggressive expansion phase of the business.

Last month, MOS Systems co-founder Mark Phillips — who is no longer involved in the company — was convicted on four counts of wire fraud, one count of mail fraud, and two counts of money laundering. MOD’s technology is deployed in airports and other locations, allowing consumers to download movies or music via the self-service kiosks.

The technology is currently being tested in 31 InMotion Entertainment stores.

[Via TechFlash]

John Cook is co-founder of GeekWire. Follow on Twitter: @geekwirenews and Facebook.

  • Joe the Coder

    This is pretty sad but the whole media kiosk thing seems like it’s time has come and gone. Best wishes to the employees – the good news is there seems to be a solid uptick in recruiting for talented developers.

  • http://twitter.com/Nanostring Nanostring Founder

    A former CEO who is a convicted criminal can have negative consequences for a young tech company.

  • Furlough this

    Actually, they were placed on leave because they were served with an eviction notice for not paying the rent for the last 4 months. Go Anthony. Go! HAHA!