YouTube content producer cites need for investment in new areas for layoffs
Digital entertainment company Machinima, which counts Google among its investors and is a big content supplier to YouTube, announced that it will lay off 22 of its 206 employees, or approximately 11% of its staff.
In a statement released Wednesday, Machinima said, “In connection with Machinima’s growth plan, the company is making an increased commitment to premium programming, its YouTube affiliate network and multiplatform distribution. As a result of an increased need for investment in these areas, Machinima is eliminating positions representing approximately 10% of the company’s workforce equating to 22 of 206 employees.”
The company continued, “Over the next several months, Machinima will announce new programming and distribution initiatives that will advance the next phase of this strategic plan.”
Machinima targets young male auds with original content including scripted series, animated shows and gameplay videos.
In December 2012, Machinima also announced a 10% reduction in headcount. The L.A.-based company raised $35 million in a round of funding in May of last year, with Google leading investors that also include returning backers Redpoint Ventures and MK Capital.
Machinima claims it serves more than 2 billion monthly video views and reaches over 200 million uniques each month, making it one of the top YouTube multichannel networks.