This is the second Sequoia-backed startup to report significant layoffs after last week’s meeting where Sequoia warned the CEOs of their portfolio companies of the long lasting effects of the downturn, and urged them to control costs and become cash flow positive. On Tuesday Jive Software, also Sequoia-backed, had a significant reduction in headcount as well.

There is a silver lining to the layoffs, or at least for those who still have a job at Adbrite: The company will now be cash flow positive and profitable, CEO Iggy Fanlo and Levine said in a phone conversation. The company had gross revenues of $32 million in 2007. He won’t discuss current revenues, other than to say it continues to grow, and that October will be a record month

Tags: adbrite, bob feller, cash flow, ceo, downturn, gross revenues, headcount, jive software, job, layoffs, paul levine, pay per click, phone conversation, portfolio companies, s, sequoia, vp finance, vp marketing