StumbleUpon Retrenching For Failing To Compete
StumbleUpon is another social media site that is experiencing a crisis. But unlike Reddit, which has internal conflict, to mention a few, StumbleUpon cites revenues as the main culprit, which forced the company to let go some employees.
StumbleUpon, a content discovery network, reportedly failed to “secure additional venture capital funding,” according to Venture Beat. Before the layoff, the company has a pool of almost 100 employees. By end of the week, it will only have 30.
“Last week, employees were told in individual meetings that they would be laid off, and now those employees are finishing up their work,” a tip from an insider said, as reported. It was also said that those who shall be retained belong to the engineering and marketing departments.
Not Competitive Enough
“It’s been tough for StumbleUpon to compete. It predates a lot of the social networks. It certainly had its heyday when they had their largest user base,” the source continued saying.
The company that works like a search engine was founded in 2002 by Geoff Smith, Garrett Camp, Eric Boyd and Justin LaFrance. In an interview with BBC in 2007, Garrett said it felt like the company “evolved into an indispensable tool for our daily lives.”
Reddit Saga: Former CEO Yishan Wong Accuses Alexis Ohanian As Culprit Of Victoria Taylor’s Termination
But in 2013, the company reportedly had a retrenchment by 30 percent and from 110 employees, it only kept 75. A talent for engineering was needed more or less a year after and the organization announced good revenues and even disclosed some figures. A procurement with 5by followed suit and in 2014, StumbleUpon grew its native ad sales team.