09 Nov 2015 Corbis Said to be Restructuring Business and Cutting 15% of Staff
According to a report by Bloomberg News, traditional stock photo agency Corbis is re-structuring the company and modifying strategy to overcome an “accelerated decline” in their stock photo business. As part of such re-structuring they will be cutting 15% of their staff.
Bloomberg News’ source is an internal memo to staff by Corbis CEO Gary Shenk that was sent out to employees last week. In it, Shenk explained the company’s revenues from stock photography business have been continuously and rapidly falling since mid-2014.
The company has started a new venture in branded entertainment, Corbis Entertainment Network, which places advertisers’ content into TV shows and movies. But profits from this new venture haven’t grown fast enough to make up for the downturn in the stock photo licensing business.
For this reason the company will be adjusting their structure. The memo informed that a number of positions will be eliminated, though didn’t specify such number. This move will come along with a new long-term strategic plan to regain profitability based in stabilising the stock photo market with focus on premium content and core buyers, and boosting the branded entertainment project. Details of the new strategy are to be disclosed sometime this week.
This Tuesday the company announced two new hires: Brian Cohee as the new CTO, and Greg Isaacs as SVP. They will focus on the development of the new branded entertainment venture. Shenk’s memo is also said to announce the departure of Chief Revenue Officer, Mark Owens, after four years in the position.