Yik Yak Lays Off 60 Percent of Employees As Growth Collapses (theverge.com)

An anonymous reader quotes a report from The Verge: Yik Yak has laid off 60 percent of employees amid a downturn in the app's growth prospects, The Verge has learned. The three-year-old anonymous social network has raised $73.5 million from top-tier investors on the promise that its young, college-age network of users could one day build a company to rival Facebook. But the challenge of growing its community while moving gradually away from anonymity has so far proven to be more than the company could muster. Employees who were affected were informed of the layoffs Thursday morning, sources told The Verge. Yik Yak employed about 50 people, and now only about 20 remain, the company said. The community, marketing, design, and product teams were all deeply affected, one source said. Atlanta-based Yik Yak was founded in 2014 by Furman University students Tyler Droll and Brooks Buffington. The app updated the concept of dorm newsletters for the mobile era, letting anyone post comments about school, their campus, or life in general. The fact that comments were anonymous initially helped the app grow, as it encouraged more candid forms of sharing than students might otherwise post on Facebook or Instagram.

Comments

meh

[Anonymous Coward]

As a previously avid user (great shitposting app)

meh.

They gimped anonymity a while back anyway and people fled.

They wanted more data to sell, basically.

It's about scalability

[rsilvergun]

These companies have the potential to make billions with only a handful of employees. That's where the ruling class is putting all their chips. They're trying to find ways to make a ton of money without all those pesky employees getting in the way with their wages and benefits and pensions. When one out of a hundred of these companies takes off it pays for all the rest of the failures (which are tax write offs anyway)