Cameo fires one year after achieving unicorn status

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Cameo, a platform that allows fans to buy personalized celebrity videos, has laid off 87 employees, according to a tweet from CEO Steven Galanis. layoffs, as first reported by The Informationaffected a quarter of the entire workforce and was the result of the company having to balance expenses with cash reserves.

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“It was a tough day at the office today. I have made the painful decision to let go of 87 beloved members of Cameo Fameo,” Galanis tweeted. “If you want to hire hungry, humble, smart, kind, curious, learning machines who love to win—and you see Cameo on their resume—look no further.” Affected employees have opened their private messages to new opportunities

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TechCrunch reached out to Cameo for comment on which roles were affected and for more information on severance pay. protocol, citing a source close to the company, reports that Cameo CTO executives, as well as heads of marketing, product and people departments, have been fired. The layoffs come just over a year after the company, backed by Google Ventures, SoftBank Vision Fund 2, Lightspeed Venture Partners and Kleiner Perkins, received the status of a unicorn.

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However, these days, the coveted $1 billion valuation status that many companies have achieved during the pandemic seems to come with growth issues. Cameo’s cuts come amid a broader downturn in the private tech sector after public tech stocks saw share price declines for months. Amazon aggregator this week Tracio began laying off part of the company after it was valued at nearly $5 billion in 2021. Robinhood, a consumer investment and savings company, announced a 9% layoff of approximately 300 people. Other companies that have reduced team size include: HR startup Workrise and Hopin virtual event platform.

At some point, Cameo was making impressive money, thanks in large part to the impact of the pandemic on the creator economy and virtual life. Galanis told Variety that in 2020, the company’s gross revenue was $ 100 million, which is 4.5 times more than a year earlier. However, as the scale of the creator economy and the taste buds of consumers change, the Cameo’s path is clearly becoming more difficult.

As I wrote before, over the past two years, technology has rightfully become more important than ever for the services it provided to the average person, whether it’s empowering a fully distributed workforce or helping us access healthcare services through a screen. In this case, a light-hearted app that connected fans to celebrities brought us creator savings and joy during a very online moment. However, technology in general has also become vulnerable. Growth in the era of a pandemic has always had one caveat: the tech companies that have found product-to-market fit and demand beyond their wildest dreams are the same tech companies that knew their victory depended at least in part on a rare event.

Cameo’s layoffs mean the startup needs to rethink how it will be built, and this time, hopefully, that response will not be at the expense of its own employees.

Current and former Cameo employees can contact Natasha Mascarenhas via email at [email protected] or via Signal, a secure encrypted messaging app, on 925 609 4188.




Credit: techcrunch.com /

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