It’s not a happy day at San Francisco-based Adbrite this morning. The company is laying off 40 employees, which is 40% of total staff. Among those that are leaving are VP Marketing Paul Levine and VP Finance Bob Feller.

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.