New York, October 22: Jellysmack, a SoftBank-backed content creator, content application and related solution provider, will reportedly lay off employees amid a reorganisation. The tech company said it was laying off employees because of Meta and scaled back its creator program. This year has been competitive for some businesses due to AI while beneficial for some startups. 

According to a report by Business Insider India, Jellysmack confirmed the layoffs and said that around 22 employees would be affected by the decision in the United States and France. The Jellysmack layoffs are expected to occur in the coming months as it moves forward with restructuring. Amid this, the report said that tech startups would scale back on the creator program through which it helped them make money by posting their content on Meta-owned apps like Facebook. NCSoft Layoffs: Thrones and Liberty Game Developer To Lay Off Significant Numbers of Employees, Ask Them To Resign or Take Voluntary Retirement Amid Restructuring,

The report said that a Jellysmack representative told Business Insider in an email response about the job cuts. The person that the decision of the Jellysmack layoffs would better help the company align its resources with the critical growth areas. The spokesperson further explained that the company's goal would be to prioritise and invest in its business units that held IP based on their success on YouTube.

The report mentioned that Jellysmack scaled back its creator program on Meta because of "opacity" related to the new monetisation model. However, the company said that it would remain dedicated to supporting its key partners and ensuring that they would receive benefits from the platform. In a previous round of layoffs, Jellysmack's CEO said that the company had undergone a "contraction" of monetisation on the platforms. Bungie Layoffs: Sony Interactive Entertainment-Owned Video Game Developer Going Through Major Changes After Its Second Round of Job Cuts, Says Report.

Back in 2020, the platform said that its creators could not leverage the library of content and the brand, but it expanded the creator economy over the years. However, the business suffered amid various challenges. Jellysmack slowly became one of the high-profile companies, achieving nine figures in earnings. But now, the tech startup focused on the business units that focused on intellectual property, indicating a narrowed focus, said the report.

(The above story first appeared on LatestLY on Oct 22, 2024 05:18 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).