Forterra Systems, the software developer behind the OLIVE platform for enterprise virtual worlds, laid off nearly half of its workforce in late 2009, mostly in mid-December. The company now has only 20 employees made up of its core engineering team and other staff devoted to delivering billable work to its government and corporate clients.

Founded in 1998 and based in San Mateo, Forterra specializes in helping business, healthcare, education, and government/defense customers meet, train, experiment, and host events with each other in a virtual space. Its primary product, OLIVE (On-Line Interactive Virtual Environment), provides customizable 3D virtual worlds where companies can meet and collaborate.

The workers made redundant include employees in Forterra's commercial sales and core research and development teams. Marketing vice president Chris Badger was also let go, according to a report from ThinkBalm, which speculates that the company will now focus more on its professional services and less on promoting its OLIVE and Meeting Labs products.

Forterra president Robert Gehorsam says the developer plans to continue operations and fulfill current contracts. Though he chose not to discuss whether the company is preparing its assets for possible acquisition, he commented, "We are always looking for ways to accelerate growth and adoption of virtual world platforms in organizations. We will look at ways to do that the best. We haven’t decided anything. It might be acquisition, further partnerships, further investment from investors, or organic growth over time."