Photo-editing app VSCO has confirmed it laid off 24 employees as part of a restructuring effort. The company is refocusing its efforts toward creating tools for professional photographers.
In an internal memo, VSCO’s CEO Eric Wittman stated the company’s consumer business declined more than expected, and some new growth initiatives did not yield the desired results. He noted that VSCO had been EBITDA-positive for three of the past four years. Despite the consumer decline, other business lines experienced growth, even if it was below the company’s expectations. Wittman also claimed that VSCO’s core app is installed on more devices in the United States than Reddit.
The layoffs impacted employees across marketing, technology, and program management teams. In a statement, Wittman expressed gratitude for the contributions of the departing employees and explained the restructuring aims to make internal operations more efficient and effective for long-term success.
Looking forward, VSCO plans to operate as an AI-native company. Its strategy involves strengthening its Pro business, AI Lab, TFP, and Sites. To power growth, VSCO intends to increase brand awareness and develop AI-powered features across its product line. This includes working on a revamped AI-native editor and building an AI assistant to help users complete tasks. The company also plans to redesign its public Photo Galleries feature, which allows photographers to curate their portfolios.
Last year, VSCO launched a marketplace to connect photographers and brands for projects. This year, the company focused on shipping AI-powered products like Canvas for collaboration and new AI editing features.
As consumer apps like Canva, Google Photos, and Adobe Lightroom continue to add AI features, VSCO appears to be shifting its strategy. Instead of only competing on AI capabilities, the company is carving out a niche by providing enhanced tools and a dedicated platform for professional photographers.