Cameo, the popular app that allows you to request a personalized video from a celebrity, is said to be going through a major turmoil. Wednesday, It’s confirmed The company has laid off nearly 25% of its employees, with 87 employees reportedly taking the ax. The news was confirmed by CEO Stephen Galanis, who attributed the cuts to the need for “the right size” of business amid recent cash slumps. The cuts reportedly included Chief Technology Officer Rob Post, who was previously Quibi’s chief technology officer, as well as Chief Product Officer Nondo Janakram and Senior Vice President of Marketing Emily Buchowitz.
“To support the demand of fans and talents during the pandemic lockdowns, the number of Cameo employees has increased from more than 100 to nearly 400,” Galanis said in a statement. “We hired a lot of people quickly, and market conditions have changed rapidly since then. Accordingly, we have the right size of business to best reflect the new realities.”
“The decision to cut our staff was a painful but necessary course correction to ensure we regain focus as well as bring flexibility to new challenges and the ability to optimize our finances, time and space to nurture new business sectors like Cameo for business, representation and web3 which we believe will be as big as business. essential that puts us on the map,” Galanis continued. “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.”
The Cameo app is said to offer fans the opportunity to request video messages from more than 45,000 celebrities, with Cameo receiving 25% of sales. According to reports from Cameo itself, the company generated total revenue of about $100 million, which is 4.5 times the amount it earned in the previous year. The company reportedly raised $100 million from investors in 2021, putting its valuation at just over $1 billion. Last year, the company also acquired its first company in Shape Represent, a Los Angeles-based platform that develops and operates e-commerce websites for celebrities.
Galanis explained, “When we started, a lot of the press and even some fans were saying, ‘Why are these celebrities making more money? Aren’t they rich enough? ” In a 2021 interview with Watchman. “But one of the big things I’ve learned running through this is that there is an enormous gap between fame and money. Most people are more famous than they are rich and a lot of them don’t make as much money as you think. Ninety-nine percent of the Screen Actors Guild are unemployed at any given time. In sports, the top 2% of athletes generate 99% of the total revenue.And in music, the top 1% of artists make more than 90% of the revenue for concerts, etc. Lots of people, direct fan income streams like Cameo is the thing The only one that keeps them afloat.So, last year there were more than 160 people in Cameo who made over $100,000 a year.This is important,helps pay rent,support families.Now we have a few more people earning more From $1 Million on Cameo. The last thing I will mention is, not all talents are driven by money, but they are all trying to become likeable and build relationships with fans.”
What do you think of the latest update surrounding the Cameo app? Share your thoughts with us in the comments below!
.
