Plex, the free streaming app, laid off approximately 20% of its staff, TechCrunch has learned, which will affect all departments, including the Personal Media teams.
“This is by far the hardest decision we’ve had to make at Plex,” CEO Keith Valory said in a statement. “These are all wonderful people, great colleagues, and good friends. But we believe it is the right thing for the long-term health and stability of Plex.”
The streaming app gives users a single destination to upload and organize content (video, audio and photos) from their own server while also allowing them to stream it via mobile app, smart TV or desktop.
In recent years, however, Plex has invested in free, ad-supported streaming (FAST) and live TV offerings. The FAST market has become saturated as many companies have entered the space. Plus, the overall advertising industry has taken a hit, making it harder for companies to earn enough revenue.
Valory noted in his statement that the company was significantly impacted by the slowdown. “While we adjusted our business plan last year after the shift in equity markets to get us back on a path to profitability without having to cut personnel expenses, the downturn in the ad market in Q2 put significantly more pressure on our business and ultimately it became clear that we would need to take additional measures in order to maintain a confident path to profitability within the next 18 months,” he said.
He added that the company is still expected to see 30% growth this year.
According to a Slack message from Valory, obtained by The Verge, which first reported the layoffs, Valory noted that 37 employees would be impacted.
Additionally, it seems that Plex may have had another round of layoffs earlier this year. Five months ago, a former account executive posted on LinkedIn that they were “affected by company layoffs.”
As of January, the company had 175 employees, and its revenue was in the double-digit millions.
Updated 6/29/23 at 12:10 p.m. ET with a statement from CEO.
Expressing empathy and sympathy for those that the decision affects and stating/iterating that it was not an easy choice isnt something I take as “woe is me” or playing the victim card.
The outcome and road ahead sucks for those affected no matter what. But sometimes all anyone can do is show some mercy and not be a dick with how they approach it.
Now, that said, it’s entirely situational and I don’t actually know the culture at plex as an employer (only as a customer). So this could totally be nothing more than lip service.
But understanding and differentiating the difference between lip service and sincerity does matter.
Empathy and sympathy is talking about how awful it is for people to have to lose their job. Especially in this market. What they’re doing is talking about themselves and how difficult it was for THEM to make the decision. I don’t care about them. I care about those who lost their livelihood.
You’re right that it wouldn’t be an easy decision. It must be awful. But losing your job is still way worse.