Photo-editing app VSCO has confirmed a restructuring plan, shifting its focus toward tools for professional photographers, resulting in 24 layoffs.

According to an internal memo obtained by TechCrunch, CEO Eric Wittman stated that the company's consumer business declined more than expected, and some new growth initiatives failed to meet targets. However, he noted that VSCO achieved positive EBITDA in three of the past four years. While consumer revenue dropped, other business lines still grew, albeit below expectations. Wittman also revealed that VSCO's core app has been installed on more U.S. devices than social platform Reddit.

The layoffs affected teams in marketing, technology, and project management.

In an emailed statement, Wittman said, "Last week, as part of our restructuring, VSCO parted ways with 24 employees. These departures spanned key roles across departments, and we deeply appreciate their contributions to VSCO’s mission. We are streamlining operations to create long-term value for photographers more efficiently and sustainably."

The memo further emphasized, "To thrive in the next five years, we must transform into a native AI company—taking bold bets while strengthening our foundation in Pro memberships, AI Labs, TFP, and Sites."

To drive growth, VSCO plans to boost brand awareness and integrate AI-powered features across its platform. This includes developing a new "native AI" editor and an AI assistant to help users navigate its tools. The company also aims to revamp its public photo gallery, enabling photographers to curate and showcase portfolios.

Last year, VSCO launched a marketplace connecting photographers with brands for collaborations. This year, it introduced AI-driven products like the Canvas collaboration tool and new editing features.

While consumer apps like Canva, Google Photos, and Adobe Lightroom aggressively adopt AI, VSCO appears to be differentiating itself by prioritizing high-quality tools and exclusive platforms for professionals—a strategy that may offer a more sustainable path forward.