After CEO Departure, Mobile Video Startup Viddy Reduces Staff by a Third

Just a few months back, Viddy was having the time of its life quoting massive user growth and raising a massive $30 million round of funding from NEA, Goldman Sachs, Khosla Ventures, and Battery Ventures.

Today, the company is having a tough time figuring out the whole mobile video thing. Viddy confirmed that it reduced its workforce, specifically in the areas of marketing and operations. The company has cut 12 positions, which is more than a third of its staff based upon what we’ve heard. Viddy claims that its core engineering team is still in place. The cuts come after the departure of CEO and co-founder Brett O’Brien.

Viddy had relied heavily on Facebook’s Open Graph to juice its user numbers ahead of its big funding round early last year. But changes to Facebook’s algorithm mean fewer people discovering the app, which in turn meant stalled user growth.

Earlier this month, O’Brien stepped down from day-to-day operations. Rumors have it that part of the reason  was an acquisition offer from Twitter that Viddy declined.

A representative from Viddy sent the following statement about the cuts:

As the board continues to review Viddy’s business, we’ve identified specific ways to streamline costs which include eliminating some positions. These changes will allow the Viddy team to be focused on bringing the most innovative and engaging social mobile video product to market. Viddy has a strong balance sheet and an exciting product roadmap ahead, including an upcoming new product release, and we have the right team in place to execute moving forward.

 

Prateek Panda

Prateek is the Founder of TheTechPanda. He's passionate about technology startups and entrepreneurship and enjoys speaking to new founders every day. Prateek has also been consistently regarded as one of the top marketing experts in the region.

Recent Posts

AI Launches: Fintech, SaaS, customer service, EdTech, hospitality, cleantech, consulting, graphics & skilling

The Tech Panda takes a look at recent launches in the superfast field of Artificial…

21 hours ago

India’s Nari Shakti moment: Women’s workforce participation doubles as industry backs return-to-work initiatives

India is witnessing a historic surge in women’s participation in the workforce. According to Ministry…

22 hours ago

Once more with feeling: An ambitious bid to build a digital Disneyland for fans

This entrepreneur, who entered the startup ecosystem when he was only thirteen years old, wants…

1 week ago

From UPI to Web3: How India’s fintech wave is reshaping the future of payments

India’s fintech sector is accelerating at breakneck speed, with digital payments becoming the new default…

2 weeks ago

AI Launches: SaaS, content management, ecommerce, cybersecurity, logistics, entertainment, & investment

The Tech Panda takes a look at recent launches in the superfast field of Artificial…

2 weeks ago