Verizon has laid off 155 employees from their go90 team, most of which worked out of their main go90 office in San Jose, according to a report from Variety.
The layoffs were mostly in the product development, content operations, and marketing departments. Verizon acquired SVOD platform Vessel last October, and the employees that came with that acquisition will be in charge of re-structuring after the layoffs.
“Our focus with go90 and our Verizon digital media efforts are to fulfill our strategy of leveraging Verizon content investments, enhancing user experience and strengthening our advertising infrastructure,” Verizon told Variety in a statement. “Fulfilling this strategy has resulted in some duplicative resources and has required organizational changes impacting 155 employees as we consolidate offices in Los Angeles, San Jose and New York. These changes are not indicative to a change in our strategy and we remain committed to rapidly enhancing our existing online video products and delivering new products.”
Richard Tom, the former co-founder of Vessel and CTO of Hulu, will step into the role of CTO at Verizon Digital Entertainment.
Last January, the company’s CFO told analysts on an earnings call that the company wouldn’t likely be profitable for another two years. Even coming to terms with the fact that the platform wouldn’t turn a profit for a while, it’s still struggled more than most anticipated.
“Early on, we thought the platform had promise, but it was an absolute dud when it launched,” one go90 publishing partner told DigiDay, back in September.
“Based on the plan they had originally laid out, it would have been a mid-tier platform for us — millions of views per month, at worst — but it’s turned out to be far, far worse than their projections,” said another.
Verizon shares fell more than 4% on Tuesday morning, just hours after their quarterly earnings report was released, marking its worst daily performance on the market in over 5 years.