WiFi mesh startup SkyPilot Networks Inc. is refusing to confirm or deny speculation of major layoffs at the company.

"We don't comment on rumors," a company spokesman told Unstrung.

Word has it that SkyPilot has chopped a significant number of staff in a bid to cut its costs. The Santa Clara, Calif.-based company has raised $68 million in funding since its inception in 2000. SkyPilot announced its latest round of $21 million in July 2006.

One industry source says that the firm has laid off at least 50 percent of its 80-plus employees since April. The axe fell most heavily on the sales and marketing departments, the source claims.

The source adds that SkyPilot is looking for a buyer.

The layoff talk comes at a fluid time for the mesh WiFi market. Marketing VP Nan Chen recently left his position at Strix Systems Inc. for pastures unknown, and there is continual chatter about hirings and firings in this niche market. (See Chen Gone From Strix.)

— Dan Jones, Site Editor, Unstrung