Written by Liz Gannes
Posted Monday, October 27, 2008 at 11:01 AM PT

UPDATED: Revision3 Makes Layoffs, as Does Smashface

This story is developing. We’ll get you more information soon.

Update 1: Revision3 has made layoffs, canceled some of its original shows, and discontinued its two new distribution agreements. The online video studio will no longer make Pixel Perfect, PopSiren, and Internet Superstar (the latter two were newer shows made by full-time Revision3 employees Sarah Lane and Martin Sargent), saying the shows didn’t find an audience to drive revenue. It will also no longer distribute EPIC FU (as of mid-December) and Wine Library (as of today), which it says don’t fit into long-term plans.

“Even though we’re sad to see these shows end on Revision3, in today’s economic climate it’s essential for us to focus on what we do best, and where the best opportunity for success lie,” Louderbeck wrote in a blog post announcing the changes.

The company will continue to put resources into expansion efforts, such as its Revision3 Beta, which aims to build audiences for the independent video shows it recruits.

Revision3’s layoffs are already having ripple effects. EPIC FU is made by Smashface Productions, which said today that in light of the decreasing licensing revenue from Revision3, as well as downturned advertising revenue, it has also made layoffs. The company dropped two producers and an editor.

Update 2: While Revision3 declined to officially comment on the number of layoffs, we hear they amount to about a third of the company. Those laid off include employees involved with the canceled shows, including both Lane and Sargent. They also include Damon Berger, who previously led creative and business development.

Update 3: More names of those laid off from Kevin Rose’s blog: Jay Speiden (writer, producer, host), Glenn McElhose (“Hippy Glenn”/Revision3 mascot) and Heather Frank (senior producer).

Disclosure: Revision3 produced The GigaOM Show.

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Topic: Hitlines, Startups

Comments (7)

This is truly a sad day. These are some of my favorite creative people producing quality & inspiring entertainment who are simply following their passion. I suppose this is the danger with advertising based media production. When the economy tanks, your way of producing is fucked. All the shows that Rev3 cut have loyal passionate audiences. It’s just a shame that there was no way to engage them in some way to keep the shows going.

Eddie Codel — 1:39 PM on October 27, 2008 Reply
This is a cleanup. And the economic client gives them the reason to clean up anything that they feel is not going their way. Anything. (for any reason)
It also says, we are doing the right thing to survive the storm. A marketing move aimed at VC’s.

But really, this company needs a rocket trajectory even in this economic crunch to do well. So these layofs are very telling to a degree..

James

James Gardiner — 2:05 PM on October 27, 2008 Reply
pop

Fraser — 3:14 PM on October 27, 2008 Reply
I am going to so miss Martin’s show.

@James, maybe they should rename themsleves as the digg nation inc. it will get higher valuation that way. seriously, i think digg nation is their strongest brand and they should rally around it.

Om Malik, NewTeeVee — 4:17 PM on October 27, 2008 Reply
Surpised. I was hearing the latest TWIT podcast which had both Sarah Lane and Kevin Rose. They were very optimistic about their shows. The show was recorded on Sunday and on Monday they have layoffs which include Sarah and Martin. surprising and shocking, But these are hard times.

Sidharth — 7:55 PM on October 27, 2008 Reply
Kevin has written about the layoffs in the blog. But rev3’s blog only gives details about the shows not layoffs. Another surpise

Sidharth — 7:57 PM on October 27, 2008 Reply
I’m surprised they let Epic-Fu and Wine Library go. Those two shows have relatively big audiences. I can’t imagine why they wouldn’t want those added numbers when trying to close the deal with potential advertisers.

Eric Susch — 10:34 PM on October 27, 2008 Reply

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