VSCO lays off 24 staff as its consumer business suffers

The popular photo editing platform VSCO has announced the layoff of 24 employees during a significant restructuring aimed at refocusing its strategy towards professional photographers. In an internal memo shared with TechCrunch, CEO Eric Wittman revealed that the company's consumer business had experienced a steeper decline than anticipated, while some new growth efforts have not brought the desired outcomes. Despite these challenges, Wittman highlighted that VSCO has been EBITDA-positive for three of the last four years. While the consumer sector faced setbacks, other business areas have shown growth, albeit not sufficient to meet expectations. He also noted that VSCO's main app is installed on more devices in the U.S. than popular platform Reddit. The layoffs predominantly affected teams within marketing, technology, and program management. Wittman expressed gratitude towards the departing employees, stating, "Each individual departing has made significant contributions to VSCO’s mission. We are sincerely thankful for their impact." As part of its restructuring, VSCO aims to enhance operational efficiency to ensure long-term success and value for photographers. Wittman emphasized the necessity for the company to evolve into an AI-native entity over the next five years, advocating for targeted investments and a stronger foundation through its Pro business, AI Lab, TFP, and Sites. To foster growth, VSCO plans to boost brand awareness and concentrate on integrating AI-driven features into its offerings. Future developments include a new “AI-native” editor and an AI assistant designed to help users navigate its tools more effectively. The company also intends to redesign its public Photo Galleries feature, which allows photographers to showcase their work. Last year, VSCO introduced a marketplace connecting photographers with brands for collaborative projects. As it moves forward, the company is prioritizing the release of AI-enhanced products like Canvas for collaboration and new editing capabilities. In an environment where competing consumer applications such as Canva, Google Photos, and Adobe Lightroom are increasingly incorporating AI features, VSCO seems to be carving out a unique space by providing superior tools specifically tailored for professional photographers.