Photobucket has recently transferred its mobile development offices from Seattle to Denver and San Fransisco. The company also underwent a merger with a Seattle based company known as Ontela. It creates technology by which users can upload images from cellphone to an email address or other accounts like Facebook and Photobucket.

This merger resulted in laying of 11 people from the Seattle office with only some marketing and development functions remaining at the site. It also showed some promotions including that of Tom Munro from president and CFO to the position of CEO.

“As we conducted our CEO search, we quickly realized the best candidate available was already doing the job. We are extremely pleased with how fast Tom took the reigns as president and how much he has accomplished in a short period of time,” said Beau Laskey, managing director of Steamboat Ventures and chairman of the board of directors for Photobucket. “Tom’s leadership and experience with company integration will help Photobucket immensely as the company enters into its next exciting phase of growth.”

The role of Photobucket’s CEO will allow Munro to lead the strategic direction of the company as well as being responsible for defining the growth plans.  Another company going through a layoff round is Digg, which came down with a flurry of disastrous news yesterday, beginning with the departure of top exec Chas Edwards.