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Social video startup Viddy has certainly seen better days.
Viddy is apparently planning to reduce its operations and marketing workforce by cutting 12 positions (or a third of its total employees), reports TechCrunch. The news comes just weeks after CEO and cofounder Brett O’Brien was canned for reportedly turning down an insane buyout offer from Twitter.
Viddy produces mobile applications (iOS and Android) for shooting 15-second clips that you can enhance with video effects called “production packs.” The startup reported massive growth back in May that brings the total number of registered users to more than 40 million, as VentureBeat previously reported. The company, which launched about a year ago, has a star-studded list of celebrity investors, including Biz Stone, Shakira, Will Smith, and Jay-Z. But the service also has its share of notable users, such as Rihanna, Snoop Dogg, Katie Couric, Mark Zuckerberg, and an often shirtless Justin Bieber.
But now that Twitter has Vine for all its social video needs (not to mention the large number of social video competitors on Facebook), Viddy seems like it’ll have a hard time gaining enough popularity to stay relevant in the future.
Viddy’s board has confirmed the job cuts, and sent us the following statement:
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.