According to TechCrunch, photo editing app VSCO has laid off 24 employees as part of a restructuring. CEO Eric Wittman, in an internal memo, stated the company’s consumer business declined more than expected and some growth initiatives didn’t pan out. The layoffs impacted marketing, tech, and program management teams. Wittman claimed VSCO’s core app is installed on more U.S. devices than Reddit and noted the company has been EBITDA-positive for three of the last four years. To power future growth, VSCO now plans to become an “AI-native” company, focusing on professional tools, a revamped AI editor, and an AI assistant.
The Pro Pivot
Here’s the thing: this feels like a long-overcome course correction. VSCO spent years as the moody, filter-heavy darling of a certain type of consumer, but that space is now brutally crowded. Canva owns the casual, all-in-one design market. Google Photos is just… there, on everyone’s phone. Adobe Lightroom is the go-to for serious hobbyists dipping a toe into pro waters. So where does that leave VSCO? Apparently, betting the farm on the professionals.
They’ve been building towards this. Last year’s marketplace for connecting photographers with brands was a clear signal. Now, with a revamped portfolio “Sites” feature and tools for collaboration, they’re trying to build a whole ecosystem, not just an editor. That’s smart. It’s harder for a pro to switch if all their client galleries, connections, and editing tools are in one place. But is it too late? Platforms like Format and PhotoShelter have owned this niche for ages.
The AI Hail Mary
Now, let’s talk about the “AI-native” buzzword. Every single company in creative software is shouting about AI right now. It’s table stakes. VSCO saying they’ll build an AI-native editor and an assistant sounds less like a unique strategy and more like a survival requirement. The real question is what their AI will actually do differently. Will it just be better sliders and automated edits, or something that genuinely understands a photographer’s style and workflow? I’m skeptical. Their “AI Lab” and recent features like “Canvas” feel like they’re playing catch-up in a race that’s already a few laps in.
And that’s the core tension in this memo. Wittman boasts about being EBITDA-positive and having a huge install base, but then immediately lays off people and declares a need for a radical, AI-driven overhaul. It sends mixed signals. Are you a stable, profitable company adjusting course, or a startup in crisis needing a transformation? It can’t really be both.
What’s Next for VSCO?
Basically, this is a classic “go upmarket” move. When the consumer base gets fickle and competitive, you pivot to serving customers who pay real money for real tools. The layoffs, focused on marketing and general program management, suggest they’re cutting broad consumer-facing efforts to double down on specialized engineering and product for pros.
But will it work? They have brand recognition, which counts for something. And if they can deeply integrate AI in a way that actually saves a working photographer time and hassle, they might have a shot. The risk is getting stuck in no-man’s-land: not cool enough for the masses, and not robust or trusted enough for the professionals. This restructuring feels like their final attempt to pick a lane. Let’s see if they can execute.
