Photo editing application VSCO has confirmed it laid off 24 employees as part of a significant restructuring aimed at pivoting its focus towards developing advanced tools for professional photographers and embracing an "AI-native" operational model. The move comes amidst a decline in its consumer business and the underperformance of several new growth initiatives.
In an internal memo obtained by TechCrunch, VSCO CEO Eric Wittman acknowledged that the company's consumer segment had experienced a more significant downturn than anticipated, and certain new growth strategies had not yielded expected results. Despite these challenges, Wittman highlighted that VSCO had been EBITDA-positive for three of the past four years, and while the consumer business struggled, other revenue streams saw growth, albeit not to the company's desired extent. He also notably claimed that VSCO's core app is installed on more U.S. devices than Reddit.
The layoffs impacted teams across marketing, technology, and program management. In an emailed statement, Wittman confirmed the job reductions, stating, "Last week, VSCO said goodbye to 24 employees as a result of a company restructure. Valued members across all departments were impacted. Every person leaving has contributed meaningfully to VSCO and our mission, and we are deeply grateful for their impact. The company is restructuring and adjusting internal operations to be more efficient and effective in delivering long-term success and value for photographers."
Looking ahead, Wittman outlined a clear strategic direction in the memo: "To succeed over the next 5 years, we need to operate as an AI-native company, taking bold but focused bets and strengthening the foundation we’ve built through our Pro business, AI Lab, TFP, and Sites."
To fuel this growth, VSCO intends to boost brand awareness and integrate AI-powered features across its product line. Specific plans include developing a revamped "AI-native" editor and building an AI assistant designed to help users complete tasks more efficiently across its suite of tools. The company also plans to redesign its public Photo Galleries feature, which enables photographers to curate and showcase their portfolios.
These strategic shifts follow recent product developments, including the launch of a marketplace last year to connect photographers and brands for projects. More recently, VSCO has focused on shipping AI-powered products such as Canvas for collaboration and new AI-driven editing features.
With major consumer apps like Canva, Google Photos, and Adobe Lightroom increasingly integrating AI features, VSCO appears to be strategically repositioning itself. Rather than competing broadly on AI capabilities, the company seems to be carving out a distinct niche by offering specialized tools and a dedicated platform tailored specifically for professional photographers.
