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.
