VSCO Cuts 24 Jobs Amid Consumer Business Decline
▼ Summary
– VSCO has laid off 24 employees as part of a restructuring to refocus on creating tools for professional photographers.
– The layoffs were due to a greater-than-expected decline in its consumer business and underperforming new growth initiatives.
– The company aims to become an “AI-native” company, developing a revamped AI editor and an AI assistant for its tools.
– It plans to increase brand awareness and redesign features like its public Photo Galleries to showcase photographer portfolios.
– VSCO’s strategy contrasts with consumer apps by carving a niche with dedicated tools and a platform for professional photographers.
The popular photo editing platform VSCO has confirmed a workforce reduction, letting go of 24 employees as part of a strategic restructuring. This move aims to sharpen the company’s focus on developing advanced tools for professional photographers, a shift prompted by a steeper-than-anticipated decline in its consumer business. While other areas of the company experienced growth, the overall performance did not meet internal expectations, leading to this organizational change.
In an internal communication, CEO Eric Wittman outlined the reasoning behind the difficult decision. He noted that despite the challenges in the consumer segment, VSCO had been EBITDA-positive for three of the past four years, indicating a degree of financial stability. Wittman also made a notable claim regarding the app’s reach, stating that VSCO’s core app is installed on more U.S. devices than Reddit. The layoffs affected teams across marketing, technology, and program management.
“Last week, VSCO said goodbye to 24 employees as a result of a company restructure,” Wittman stated. “Valued members across all departments were impacted. Every person leaving has contributed meaningfully to VSCO and our mission, and we are deeply grateful for their impact. The company is restructuring and adjusting internal operations to be more efficient and effective in delivering long-term success and value for photographers.”
Looking forward, the company’s strategy is heavily centered on artificial intelligence. Wittman emphasized that succeeding in the coming years requires operating as “an AI-native company.” To power its next phase of growth, VSCO plans to boost brand awareness and integrate AI-powered features throughout its product lineup. Specific initiatives include developing a completely revamped “AI native” editor and building an intelligent assistant to help users accomplish tasks across its suite of tools.
The company also intends to redesign its public Photo Galleries feature, which allows photographers to curate and showcase their portfolios. This follows other recent product developments, including last year’s launch of a marketplace connecting photographers with brands and this year’s introduction of AI-driven tools like Canvas for collaboration. The overarching goal is to strengthen foundations built through its Pro business, AI Lab, and other services.
As major consumer apps like Canva, Google Photos, and Adobe Lightroom aggressively integrate AI, VSCO’s restructuring suggests a strategic pivot. Instead of competing directly in the broad consumer AI feature race, the company appears to be carving out a distinct niche by providing better tools and a dedicated platform for pro photographers, leveraging AI to specifically enhance professional workflows and creative outcomes.
(Source: TechCrunch)
