VSCO Lays Off 24 Staff Amidst Consumer Business Struggles

VSCO Undergoes Restructuring, Reduces Workforce

VSCO, the popular photo editing application, has recently announced a reduction in its workforce, impacting 24 employees. This decision stems from a company-wide restructuring initiative designed to concentrate resources on serving professional photographers.

Consumer Business Decline and Strategic Shift

According to an internal communication obtained by TechCrunch, VSCO’s CEO, Eric Wittman, indicated that the company’s consumer-facing business experienced a more significant downturn than anticipated. Furthermore, certain new growth strategies did not deliver the projected outcomes.

Despite these challenges, VSCO has maintained positive EBITDA for three out of the last four years. While the consumer segment faced difficulties, other areas of the business demonstrated growth, albeit not to the extent desired by the company.

Impacted Teams and Company Sentiment

The layoffs affected teams within marketing, technology, and program management. Wittman expressed gratitude for the contributions of departing employees, acknowledging their significant impact on VSCO’s mission.

“Every person leaving has contributed meaningfully to VSCO,” Wittman stated in an official email. “We are deeply grateful for their impact and are restructuring to enhance efficiency and long-term value for photographers.”

Focus on AI and Professional Tools

VSCO intends to evolve into an “AI-native company” over the next five years. This involves strategic investments and strengthening its existing Pro business, AI Lab, TFP, and Sites platforms.

The company aims to elevate brand awareness and integrate AI-powered features throughout its product line. Plans include developing a redesigned, AI-driven editor and an AI assistant to streamline user workflows.

Enhancements to Existing Platforms

VSCO also intends to revamp its public Photo Galleries, enabling photographers to effectively curate and present their portfolios. This feature will allow for enhanced showcase of professional work.

Last year saw the launch of a marketplace connecting photographers with brands for collaborative projects. This year’s focus has been on delivering AI-enhanced products like Canvas for collaboration and innovative editing capabilities.

Competitive Landscape and Strategic Positioning

With competitors such as Canva, Google Photos, and Adobe Lightroom increasingly incorporating AI features, VSCO appears to be prioritizing a specialized approach. The company believes that providing superior tools and a dedicated platform for professional photographers represents a viable and effective strategy.

It seems VSCO has determined that focusing on a niche market with specialized tools will be more beneficial than directly competing on AI features alone.