VSCO, the popular photo-editing app once celebrated as a creative haven for Gen Z and millennials, has announced the layoff of 24 staff members as its consumer business faces significant challenges.
According to an internal memo from CEO Eric Wittman, obtained by TechCrunch, the company’s consumer segment has declined more than expected, while new growth initiatives failed to deliver the anticipated results.
Why VSCO Is Struggling in the Consumer Market
This downturn reflects broader trends in the tech and social media space, where user retention and monetization are becoming increasingly difficult amidst fierce competition from giants like Instagram and TikTok.
VSCO, which peaked in popularity for its aesthetic filters and minimalist vibe, has struggled to adapt to the fast-evolving demands of content creators who now prioritize video and interactive features over static imagery.
A History of Challenges and Layoffs
This isn’t the first time VSCO has faced headwinds, as the company previously laid off 30% of its staff in 2020 during the COVID-19 crisis to reduce reliance on external capital.
That earlier restructuring hinted at deeper structural issues, and the latest cuts suggest that VSCO is still grappling with finding a sustainable business model in a crowded market.
Impact on Employees and Industry Perception
The layoffs, though small in number compared to mass cuts at larger tech firms, still represent a significant blow to the affected employees and signal potential uncertainty about VSCO’s future direction.
Industry observers note that such moves can erode trust among remaining staff and users, potentially accelerating user churn if the app fails to innovate.
Broader Tech Industry Context in 2025
VSCO’s layoffs come amidst a wave of tech layoffs in 2025, with over 126,000 jobs cut across U.S.-based companies this year, according to Crunchbase News, reflecting a cautious approach to spending and growth.
The focus on profitability over expansion, coupled with the rise of AI and automation replacing human roles, has created a challenging environment for smaller players like VSCO to thrive.
What Lies Ahead for VSCO?
Looking forward, VSCO will need to pivot strategically, potentially focusing on niche creator tools or partnerships to regain momentum in a market that rewards adaptability.
While the company’s leadership remains optimistic about long-term prospects, the path to recovery will require addressing both consumer engagement and internal morale to rebuild a competitive edge.
Andrew Lee
