The dot-com information service provider broke the news yesterday in a nationwide conference call with all field workers. The New York City operation had not been included in the morning conference when verbal pink slips had been handed out, our Dallas source reveals. Since then, employees have received written notice of permanent layoffs that will give cash for unused vacation time and two weeks pay. As of yesterday, the cell phones for the New York City sales staff had been disconnected, he reports--another fact that the New York based contact denies.

As reported on GlobeSt.com this morning, the cash-strapped company is scrambling to dig up more investors and as it does so, made the cutbacks in order to "make it leaner and stronger. They are not closing their doors, and they are not going to change their business model."

Just two months ago, RealtyIQ had received about $50 million in additional venture capital from its financial backer, FrontLine Capital, a publicly traded company. A new COO, Tim Lemmon, had just joined the ranks in recent weeks. GlobeSt.com's Dallas source says Brian Jetty, a vice president based in Dallas, had flown to New York City two weeks ago to meet with Lemmon. Jetty had returned to Dallas with the good news that all would be fine with the operation, the source says. Jetty is among those who were shown the door yesterday.