In an effort to speed up profitability, digital entertainment site Craftsy this week laid off 24 employees who helped produce the Denver firm’s signature video tutorials.
It was a tough decision, Craftsy co-founder and CEO John Levisay said. But Craftsy has been expanding into new markets, including creating and selling its own yarns (sourced in Peru) and quilting fabrics (sourced in Japan). Craftsy in June opened a 180,000-square-foot warehouse in Indianapolis to handle its e-commerce expansion and the company is moving ahead with hiring 40 people for logistics jobs.
“The business has really grown, and like any business, at various times, when there is fast growth particularly in the tech industry, it’s really difficult to match strategic resources with growth,” he said. “It’s never a pleasant thing to have to reduce in a given area. I take this very personally (because of) folks who have been great for us for a lot of time. Ultimately, you’ve got to make prudent business decisions.”
Levisay said that as expansion ramped up and investors pushed for profitability, management decided they could slow down how many videos will be produced. The current video library includes 1,300 classes on cooking, sewing, cake decorating, and other arts and crafts.
“We still have a team that is filming every week and we’re still bringing instructors in,” he said.
Craftsy, which initially made the bulk of its money from on-demand videos, ventured into selling materials from other brands a few years ago. But this year it began adding its own branded quilting fabrics and yarns. The company, which has raised about $106 million in venture capital, has partnered with major brands such as King Arthur Flour to produce artisan bread videos and Food Network star Ellie Krieger on healthy meals.
The company in October also cut 32 employees, mostly from production. It currently employs about 175 people, Levisay said.
