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Author Topic: Layoffs at istock  (Read 109079 times)

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helix7

« Reply #25 on: January 17, 2012, 21:16 »
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I really want to believe that these layoffs were necessary and for the good of the company, maybe in some effort to cut costs and fix some things. And I almost could believe that except that yesterday istock raised some prices for E+ files, which seems to be a move counter to trying to fix things in Calgary. Jacking up prices just grows the problem.

I'm no business expert, but I truly believe that cutting prices is the only way to put istock back together. Sales volume is slowing. They need to get people buying again with the almost reckless abandon of past years. I used to buy small images for comps just to not have the watermark in them. Even if I didn't use them in final projects, it was worth a buck to get a non-watermarked image for presentation purposes. Now, forget it. $9 for an XS E+ image? Please. I don't buy there at all anymore because prices got so crazy.

The only thing that will save istock is a return to that pricing mentality. Continuing to go in the other direction, always raising prices, it will without a doubt kill the company.
« Last Edit: January 17, 2012, 21:18 by helix7 »


« Reply #26 on: January 17, 2012, 21:20 »
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Indeed: Raising prices WHILE cutting staff. The turds.

Ah, I think of all the fan boys and girls who held on for so long ...

Hopefully no one has any WooYay illusions anymore.

« Reply #27 on: January 17, 2012, 21:27 »
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A Twitter post from six hours ago says there were 30 layoffs.  I don't know how big the company is, how many they employ.  Is that a lot?

« Reply #28 on: January 17, 2012, 21:28 »
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To be a fly on the wall...

Quote
poploser Tyler Hellard
Listening to @iStock layoff stories with old co-workers. And wow... just wow.

« Reply #29 on: January 17, 2012, 21:33 »
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Makes me wonder if KKT was the last line of defense for some of these people. He gets replaced and the trickle is turning into a tidal wave. How I wish Lobo was one of the cuts though! LOL

« Reply #30 on: January 17, 2012, 21:35 »
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A Twitter post from six hours ago says there were 30 layoffs.  I don't know how big the company is, how many they employ.  Is that a lot?

I think for HQ it is. The number 100 (give or take) sticks in my mind for some reason.

« Reply #31 on: January 17, 2012, 21:40 »
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To be a fly on the wall...

Quote
poploser Tyler Hellard
Listening to @iStock layoff stories with old co-workers. And wow... just wow.

it's very sad. I feel for all of those laid off.  I had several friends laid off when the economy tanked.  A few are still looking for work, thankfully most found other work, though not as high paying as the jobs they had been with for years.  As much as I am angry about what istock has done to its contributors this is truly a sad day to see them lay-off employees.  

I guess that financial assistance for the new and improved minilypse program really seems like a crazy thing to do when you're going to be laying off employees a few weeks after you announce this.

« Reply #32 on: January 17, 2012, 21:45 »
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Sad news for those affected.  Hopefully they've had enough warning to sock away some cash and at least get their resume updated.

« Reply #33 on: January 17, 2012, 21:47 »
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It's hard enough getting any sort of information out of them as it is, it's going to be much harder now.

The writing has been on the wall for sometime now, but the lack of any sort of feedback about anything recently seems to indicate something has been going on there.

I wonder if they will make any sort of official announcement ... somehow I doubt it!

« Reply #34 on: January 17, 2012, 21:48 »
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A Twitter post from six hours ago says there were 30 layoffs.  I don't know how big the company is, how many they employ.  Is that a lot?

I can't find that twitter post, might have been deleted.

« Reply #35 on: January 17, 2012, 21:49 »
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Looks like the Getty smoke and mirrors machine has at least one last gasp before they have to come clean that the net profit is falling.  Layoffs only help the bottom line for so long.

« Reply #36 on: January 17, 2012, 21:49 »
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Makes me wonder if KKT was the last line of defense for some of these people. He gets replaced and the trickle is turning into a tidal wave. How I wish Lobo was one of the cuts though! LOL

According to that interview with Kelly in October, he was promoted to Vice President of Product Development, and is now based in New York City. 

https://www.youtube.com/watch?v=AbESgjlRjCA

« Reply #37 on: January 17, 2012, 21:50 »
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According to Manta.com they have (had) 116 employees.  That data might be questionable since they say that iStockphoto, LP was established in 2008 - but then that could be when they organized under the "LP" status?  director is listed as Kelly Thompson.

Manta also lists iStockphoto Ulc at the same address with 50 employees - director there is listed as Darren Brown.  I'm not familiar with Canadian business structures to not sure what Ulc is, but I"m guessing someone here may know?

But I'd say it's still pretty close.  I wonder what effect this has on the other offices outside of Canada - like Germany?  didn't they open an office there?  and I thought another one somewhere too?  

« Reply #38 on: January 17, 2012, 21:57 »
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« Reply #39 on: January 17, 2012, 22:03 »
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A Twitter post from six hours ago says there were 30 layoffs.  I don't know how big the company is, how many they employ.  Is that a lot?

I can't find that twitter post, might have been deleted.

nope here it is:

« Reply #40 on: January 17, 2012, 22:03 »
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Makes me wonder if KKT was the last line of defense for some of these people. He gets replaced and the trickle is turning into a tidal wave. How I wish Lobo was one of the cuts though! LOL

According to that interview with Kelly in October, he was promoted to Vice President of Product Development, and is now based in New York City. 

https://www.youtube.com/watch?v=AbESgjlRjCA

Right, but he would have zero control over iStock in that position...if he is still there, that is!

« Reply #41 on: January 17, 2012, 22:05 »
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« Reply #42 on: January 17, 2012, 22:09 »
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A Twitter post from six hours ago says there were 30 layoffs.  I don't know how big the company is, how many they employ.  Is that a lot?

I can't find that twitter post, might have been deleted.
Never mind, found it.

« Reply #43 on: January 17, 2012, 22:39 »
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I wonder if those laid off received some type of "golden parachute" offer of a bonus to not trash-talk iS in return?

« Reply #44 on: January 17, 2012, 22:52 »
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Wow this really came out of left field...

Let me recap...

Getty Buys iStock
iStock Expands
Prices are raised a few times
iStock becomes fastest earning and growing Microstock
H&F Buys Getty/iStock
Bruce leaves
Prices raised a few more
iStock continues growth
best match changes every few weeks
Search problems abound
RC System takes away from contributors
Prices raised and tweaked
Buyers start to migrate Sales slow down
Many Exclusives break contract
Forums are no longer tolerant
Kelly Accepts new Position
More price tweaking
Forums are over moderated
Severe Site outage
Sales are slowing even more
Worst contributor stats in several years
Traffic takes a nose dive
Contributors are kept in the dark
Non Exclusives are sent to the back of the search
iStock Lays off several employees  Probably to boost profits.
No official HQ statement yet...

I probably missed a bunch of stuff but its very discouraging to hear these news.

All I can say is thank you to the employees that have received the news and the ones that are still at HQ doing their best to weather the storm.  I bet you all worked heavily to create what this place got to at it's peak. May you unfortunate find work early and with little downtime.

To be fair we as contributors are not owed any explanation for the layoffs or should be privy to the circumstances that created this event. But it would show some good will and communicative effort to give us some sort of outlook for the year which used to be an iStock tradition maybe even with why these layoffs were necessary.

KB

« Reply #45 on: January 17, 2012, 22:54 »
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I really want to believe that these layoffs were necessary and for the good of the company, maybe in some effort to cut costs and fix some things. And I almost could believe that except that yesterday istock raised some prices for E+ files, which seems to be a move counter to trying to fix things in Calgary. Jacking up prices just grows the problem.

XS+ was raised from 5 to 6 credits, S+ from 10 to 12, and XXL+ from 40 to 45. At the same time, exclusive XXXL was cut from 32 to 28 and XXL from 27 to 25. Just seems like some minor tweaking to me (though, yes, in % terms 10 to 12 is a 20% increase, but still ...).

KB

« Reply #46 on: January 17, 2012, 22:58 »
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Wow this really came out of left field...

Let me recap...
I'd add to your list Rob Sylvan leaving and major exclusives dropping exclusivity in droves.

I'd subtract "Non Exclusives are sent to the back of the search" as that was a temporary best match oddity that hopefully will never be repeated.

« Reply #47 on: January 17, 2012, 23:01 »
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Wow this really came out of left field...

Let me recap...

Getty Buys iStock
iStock Expands
...

You forgot:
iStock kicks contributors a wet willy
.
.
.
iStock kicks contributors in the shin
.
.
.
iStock gives contributors an atomic wedgie
.
.
.
iStock kicks contributors in the groin
.

KB

« Reply #48 on: January 17, 2012, 23:03 »
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^ Those are implied.

« Reply #49 on: January 17, 2012, 23:03 »
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I doubt their profit is falling. It will in future but for now it is less business (and getting more so) but with higher margins due to decreased costs. They now pay less in royalties and less for operations. I suspect the prgrammers aren't paid much.


 

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