Cameo, a startup that sells celebrity custom video looks that was valued at nearly $1 billion last year, has laid off a large number of workers after business slowed.
The company has laid off nearly 100 employees, representing 25% of its staff. CEO Stephen Galanis confirmed the cuts, citing the need for “the right size” of the business after its fortunes were reversed in the wake of a boom driven by the COVID-19 pandemic.
In 2020, Cameo claimed to have generated about $100 million in total revenue – a 4.5 times increase over the previous year. It’s clear that the pace of their sales has slowed down considerably since then.
In a statement made by Galanis to diverseThe CEO said, “To support demand from fans and talent alike during the pandemic lockdowns, Cameo’s staff has grown from just over 100 to nearly 400. We have hired a lot of people quickly, and market conditions have changed rapidly since then. Based on Therefore, we have the appropriate volume of work to best reflect the new realities.”
Galanis continued, “The decision to reduce our headcount was a painful but necessary course correction to ensure we regain focus as well as bring flexibility to new challenges and the ability to improve our financial resources, time and space to nurture new business sectors such as Cameo for Business, Represent and web3 which We believe it will be as large as the core business that puts us on the map. We are optimistic about the medium and long-term future for Cameo, and the actions we have taken to balance our costs with our cash reserves will best position the company to take full advantage of these growth opportunities.”
Last year, Cameo raised $100 million from investors including Amazon, Google, and UTA, giving the company a valuation of just over $1 billion. In October, Cameo made its first acquisition: Represent, a Los Angeles-based marketing and merchandising platform that develops and operates direct-to-fan e-commerce sites for celebrity clients.
The company sells shoutouts from over 45,000 celebrities (and lesser-known people). Camillo says it requires a 25% cut in sales, and the rest goes to talented people.
Cameo’s celebrity list includes Cedric the Entertainer, Kenny G, Erin Andrews, Anthony Anderson, Kate Flannery, Ice T, Brian Baumgartner (Kevin from “The Office”) and Rudy Giuliani. According to Cameo’s website, currently popular talent partners include David Hasselhoff ($499 and up for a custom video), Dolph Lundgren ($350 or more), Stormy Daniels ($250 more), and Amanza Smith from Sell Sunset” ($250+) and singer Randy Travis ($200+).
Just yesterday, Snap and Cameo announced a new partnership, the Snap x Cameo Advertiser Program, which will allow Snapchat video advertisers to partner with Cameo talent partners to create personalized short video ads for Snapchat.
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