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StumbleUpon Fails To Secure New Funding, Lays Off “Dozens Of Employees”

StumbleUpon Fails To Secure New Funding, Lays Off “Dozens Of Employees”
[Photo: Gemenacom via Shutterstock]

StumbleUpon, the once-popular discovery engine that lets users “stumble” onto new web content, has hit another road bump. According to VentureBeat, the company is now downsizing even further following a number of layoffs issued in 2013.

StumbleUpon is in the process of dismissing “dozens of employees” after failing to receive another round of funding. By the end of the week, the company’s workforce of nearly 100 employees will be culled to just 30, VentureBeat reports. Those in engineering and sales positions will be spared, VentureBeat said.

The social media site has struggled to keep up with giants like Facebook and YouTube, particularly in regards to being attractive to advertisers. In 2012, StumbleUpon reported that it had 25 million registered users–but it hasn’t released new numbers since.

“It’s been tough for StumbleUpon to compete,” a source familiar with the matter told VentureBeat. “It predates a lot of the social networks. It certainly had its heyday when they had their largest user base.”

VentureBeat points out that downloads of StumbleUpon’s iOS app have fallen steeply in the past three years, according to mobile apps analytics tool App Annie:

StumbleUpon last secured funding in 2011, when it received $17 million–two years after it stepped out from under eBay and reclaimed its title as a startup. (The e-commerce site had acquired StumbleUpon back in 2007.) In 2013, the company let go of 35 employees.

[via VentureBeat]