Online video site Veoh is laying off 20 people, or 18% of its staff of 110. The move comes a month after Paidcontent reported layoffs in Veoh’s Russian office in St. Petersburg, which CEO Steve Mitgang says was a strategic decision rather than a financial one, as Veoh wanted to move its development staff to San Diego (where it has hired a replacement team).
This round is more of a financial move, given the new economic reality. The company insists that it is still strong on a financial front, and expects to be profitable next year, although CEO Mitgang admits profitability could be pushed out a quarter. Despite the somber news, he is confident Veoh will emerge as one of the few surviving video sites in what will no doubt be a coming shakeout.
According to comScore, visitors to the Veoh.com in the U.S. have come down from 4.5 million people in June to 3.8 million in September. And total minutes spent on the site has similarly dropped from 99.6 million minutes in June to 66.8 million in September. That drop in visitors is more than made up for in the growth in its standalone video app, Veoh TV, which reached 2.3 million people in the U.S in September. Globally, 16 million people watched videos on the site in September, and another 12 million watched via the app (see chart below).
The company has raised $70 million, including $30 million just last June. We are adding this announcement to our Layoff Tracker.