Wyze Struggles With Employee Cuts

Published Apr 10, 2023 14:33 PM

Despite Wyze raising $110 million less than 2 years ago from backers led by Jay-Z's Marcy Venture Partners, the company has significantly cut staff starting at the end of last year.

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While Wyze has become a sizeable competitor in the consumer surveillance and security space, it has struggled with profitability, as the company has aggressively priced its products, frequently at near-zero gross margins.

In this report, we examine the evidence of the layoff, Wyze's business challenges, its relationship with Amazon, and what headcount declines reveal about its strategy.

***** ** ******** **** **** ****** employees *** ************* ****** **** ********** **** *** ******* **** *** ~20% ** *** ***** ** ******** 2022. *************** **** *** ******* **** not ******* ** ********* **** ****, however, ***** ***** *****.

"20% ********"

** ***. *, ****, * **** on *** ********* **** ********* **** Blind,***** ******** * **** ***** ********** ******* ** ****** ***** ******** companies, ********* * **** ******: "**** Layoffs — **% ********".

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** * ******* ***** *** ****, the **** ********* *** *** ****** occurred: "***** *** ** ***** **** gave *-**** ****** *** **** **** right *****. ***** *** ******** *** I ***** ********* ** * *****". The **** *** *** ******** ***** specific **** ** *** ******* ** the ***** ** ****** *** **** laid ***.

**** ***** *** **** ******* ***** the ********* ** ****, *** **** replied: "* ** *** **** ** comment ******* *** ***'* **** *** of ** ******** ** *** ****** but * ***** ** *** **** a **** ** *** ********[*'] ********* in **** ****** *** ** ***** where *** *** **** **** ******** you ****** ** **** ** *********** your *** **** ****'* ***** **".

"Impacted ** **** *******"

**** *** ******** *** ****** *******, statement, ** ************ ** * ******. However, *** ********* **** ** ************* by **** ***** **** ****** **** employees ** ******** *** *** **** in ******** **** **** **** **** fired. *** ** *** ****** ********* said ** ***** **** **** *** layoff ******** ** * "**% ********* of *** *********."

*** ******* ******** *** ******** *********, a ******* ********, * ******** *********** engineer, *** * ***** ********* *************. Four ** **** *** ***** ******* for ****, ********* ** ***** ******** profiles.

*** ** *** ****** ******** ********* posted: "***** * *** ******** ** the **** ******, *** **** * months ** ****, * *** *** opportunity ** **** ** **** ******** surrounded ** ******* *** ********* ******. I ** ******** ** **** **** for *** *********** *** **********! ****, another ****** ** ***** ******* **** whom * ******* * *** ****!"

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*** ****** ******** *********** ******** ******: "Unfortunately, * *** ******** ** **** layoffs, **** *******. ** *** **** four ******, * *** ************* ** work ** ********* ******** *** *** surrounded ** **** ******** ********* *** leaders. *'* ******** *** ********** * learned **** ******* ** ****."

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**** ** *** ****** **** ********* who ****** ** ******** ***** ******* replied **** **** ******* *** ** ask *** ******* *******.

No ******** **** ****

** ******* *** ** **** ********** for **** **** * **** *** no ******** *** **** *****. **** did ********** ********* **** *********** *****.

Shrinking *********

*** $*** ******* ********** ** **** 2021 *** ** *** *** *******'* largest ******* ***** ***** *** ******** in **** *** *** ***** ** more **** * ***** *** ***** previous ******* ******. ** *** ****, the******* **** ********:"** *** ******** **** *** ********* heavily ** ***** *****-***** ********** ************ into *** ****** ********."

*** ******* *** *** ******** ** growing *** ****, *******, ********* ** software ***********, ********* ** ********. ****'* total ****** ** ********* ****** ** 199, **** **.*% **** *** ** August **** (**** *** ******* *** announced), ********* ** ********.

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** *** **** *** ******, ********* has ******* **** ************* ** *********** and **********, ********* ** ******** ****. Over *** **** ****, *** ******* drops **** ** *********** *** **********.

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****** ******** *** *** *** **** to * **** **** ****, **** only ***** ***** ** *** **** 4 ****** (******** **** - ***** 2023), ********* ** ********.

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**********, **** * ***** ****** *** December *******, **** **** ********* **** encouraging ***** **** ******* ** ***** at ***** ******* *** ****** **** Wyze ***** *** ********.

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Business **********

****'* **** ******* ***** *** *** primary ****** ** *** ****** ** its *** ***** *****. *** ******* claimed ** **** **** ** *** "replace * $**** ******** ****** *** about * ******* *****."

************ *** ****** ** **************** *** ***** *** ******** ***** on ******* *********** **** ****, ****** for **** *** ******* *** ************* lower **** ***** ** ******* ***/******** kids **** ****** *** ******* *** box *********.

*********, **** ***** ******* **** *** ***** $**.**. **-**** ********** **** ******* ***** ***** *** $169.99. ******* *** ** ********** $**.** *** * ****** ****** and $**.** *** * *-****.***** ********** ***** ****** ******** *** ********* for ********** ************ ****.

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***** *************** ******** ******** ***** *** ******* ** *** cameras *** *** *****, ** ***** for ****/*** *** ***-********** ***. *******, with ***** ******* ** *** ** ~3% ** **** *** **'*, *** overall ***** ******* ***** ~**%, **** is ****** ****** *** *** ******** loyalty.

***** ********* *** ******** **** *****, it ** ****** **** ** ****** in *** **** **** ****. **** estimated *** ***-**** ***** ** **** at $** *******. ***** ** **** figure *** *** *******'* ********** ***** its ****** ******, ************* ****** ********** ***** ** ~$*** ******* ** 2021.

*** ******* ******* *** *** ********* its *** ****** ** ******** ******* figures, ** ** ****** ******** **** Wyze **** ******* ****** ****** ** earn * ******. ******-******, ********* ************ revenue **** ******* * ********** ***** part ** ****'* ********.

Signs ** ******

*** ** ** ******* *** ****** Wyze ********* ********* ******* ** *********, **** **% **** **** ******** of ****** *** *****.*******, *** ******* ******** * ****** of *.* *** ** * *****.

******* ******** ******* ********* ***** ********** or *** ******* ***** ****** *******. One **** ** *** **** **** a ****-******* ******** ******:

******* ******** ******** ** ***** (*-* new ******** * ****!) *** ***** are *** ****** ********* *** *** handle ** **** *** ******** ******! Everyone ** ******* ******** ** *** features *** *** ************ ** **** super ***** ********* *** *** ******* launch, ** **** ** **** * stop *** ***** ***** **** **** plan ** **** **** *** **** debt. ** ***** *** **** *** more **** ***** *** *** ******** crashed ***** *** *****. * *** of ********* ******* *** ****.

******* ****** ****** *** **** *****, titled "***** **********, ********* ******* ******, zero *********," ******:

***** ******* ********** ****: “***** ******* with *** ********” ********** *********** ******** it ********* **** ** *********** ** make ***** **** ******. **** **** not ****** ** ********, **’* *** about ********* ***** ******* **** **** long ****** *** *** **** “*******” to **** ***. ******** ******* **** is ****** ***** *** *** *** the **** **** ****** *** ****** team **** *** ** *** *** out ** ** **** ** ***** for *** ******** *** ***** ******** sense.

* ****** ** ******* ****, ****** "A ***** ****," ***** **** ********** layoffs, ******:

******** ********** ****...** *** **** **** read **** ******, **** ** *** you: *** *** **** ***** ** owe **** ** *** **************** **** some *****-** ***? ** *** *** guys *** ******* ** **** ***** your *** ******** ** *** ******* of **** *******? *** **** ****** everything *** ******** *** ** ***** people - *** ********* *** ***** sales ****, *** *** *** ** a ********* *** **** ***** ****, and *** *** *** *********** ***** finance ”***’* *** *** ******* *****”???

******** ********* *** **** **** ******** comments ***** *** *******, **** ** stating **** **** *** "******** *** hardworking **-*******."

Indications ** ********

**** *** **** ******* ** *** strength ************ *********** **** **** *************** * $** ******. **'* **** ********** *** ******** of ********* * **** ***** ** "smart ****" ********, ********* ***** *******, mesh *******, ***** *****, ******** *** room *******.

*** $** ****** *** **** **** build **** ****** *****. *** ************* of ********* ******* **** ** ******** its ***** ********* *** ********* *** revenue. *** ********** ****** ******* ********* while **** ****** *** ******-***** ***** growth *** ******** ***** ***** ** a ****.

Shift **** ******

********* **** ******** ******** **** *** **** ******** *** business ***** ** ** **** ******* on ******-**-******** ***** ****** **** ***** dependent ** ******, ***** ** ****** was ************ **% ** ****'* *****:

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*** *** ****** ** ****'* ******* from **** ***** ** *** ******** clear - *.*., *** **** ***** away **** ****** ****** ** ***** greater ** ****** ***** *******?

***** ** ****** ******, ****** *** be ******* *** **** ****** ****** Wyze. *** *******, *** *** ****** we ******** *** "** ******" *** "wansview", ****** ** "******'* ******":

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****, ******'* *** ***** ** ****, Blink, *** ***,***+ *******:

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** ********, ********* *** **** ******* just * *** ******** *******:

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**** ***** ** ******* *********** *** impact ** ****** ***** ** ****.

Comments (10)
SD
Shannon Davis
Apr 10, 2023
IPVMU Certified

* ***'* ********** ***** ***** ** their ********* *** ******. **** ***** new ******* **** **** **** *** they ***** **** ****** ******* ******* $10 ** $** *** ****** ***** still *** ****.

(2)
JH
John Honovich
Apr 10, 2023
IPVM

* ***** ** *** ***** ***** customers *** **** ***** ********* **** we *******? * ******* **** *** a ****** ****** / ***** ******** base ***, ** *** ****** **** did, ** ***** ******** ****** **** at **** *****.

**** ** *** ** *** ******* of ****** ***'* ***** ** ***** the ****** **** ** ***'* ****** may ** *** **** ****** ** jump ** ****** ******** **** ** even ***** *******.

(2)
UE
Undisclosed End User #3
Apr 12, 2023

** $** **** * ***, * would **** ** ***** ********. * had *** ** ******* *** * cam *** *** ****** ** *** a *** *** *** ******* ** the *****. **** ***** *** **** v3 *** ***** ********** *** $** in **** ********, *** * ******* bought ****. **** ******* *** $** seems ********** ** ****. *'* **** I'm *** *** **** ********** *** there.

JH
John Honovich
Apr 12, 2023
IPVM

*** ****, **** ****** ***** ******. The ********* ******** ***** ** ******* the ******* ******** ** ************ ****** from *** ****** ****** ***** ****** the ******** ******* ** ***** **** sales. * ***'* **** **** *** my *** ** **** **'* ***** attempting. **** **** **** ***-******* ****** of ******** ******* *** *****. *** many, *** ** ****** *** **** all, **** ***** ** ***** ********* to *** **** *** **** ** switch ** **** ******* *****.

UM
Undisclosed Manufacturer #1
Apr 11, 2023

"**** ***** ******* ** *** ** ~3% ** **** *** **'*, *** overall ***** ******* ***** ~**%" ***** do ***** ******* **** ****? ******.

CS
Christie Smythe
Apr 11, 2023

*** ******* **** ********* ** ******* representatives ** ***** ****** ** ********* ****. **** **** *** ********* disclose ********* *******, ** ** **** to **** *** ******** ** **** information **** ** ******* ** ***** kinds ** *********.

UI
Undisclosed Integrator #2
Apr 11, 2023

******* ***** ******** ********* ** **** and **** ********* ** **** *****?

*'* ** ******* ** *** ***.

(3)
JH
John Honovich
Apr 11, 2023
IPVM

* **** *** * *****. ** fairness, ******, **'* *** ** ******** stupid ********. ** **** *** ***** scale, **** ***** **** * ****** to ******** **** ***** ******** ****. Amazon *** ****** ** **** * strategy *** ** ***** *** ** is ******* **** ****.

UM
Undisclosed Manufacturer #4
Apr 12, 2023

* ***** ***** ******** ******** ( I ***'* **** ******* *********) *** to **** ***** **** **** ** fast ** ******** *** ** *** cost ** **** ** ** *********** target *** ******* **** ** ****** who ***** **** (** ***** *** years ****) ***** ****** *** **** about ******** ***********. **'* ******* **** they **** ***** ** ***** ******* even ** **** **** *** ***** up ***** ********.

** ******* *** **** **** ******* out *** ***** ******* ********** (** addition ** ** ******* ** ***** out * ****** ***** *****) ** make **** ****** *** ** ***** other ********** (***** **** ** *** prices) ** **** ********** *** ***** thin ******* ** *** *******. ***** services **** *** ** ********** ******* but ** ****** **** *** ******* like **** *** *** ** ********** as ****/*****/**** ** ***** ** *** conversion **** ***** ** **** *** get **** *** **** ***** ** price *** ***** ********* *** **** likely ** *** **** ** *** deal ** ****.

(1)
JH
John Honovich
Apr 12, 2023
IPVM

***** ******** **** *** ** ********** margins

***, ** ********* ***** ********** *** actions **** -**** **** *** ************ *******, *** Plus *** *** *** *******.

**'* *** ***** *** **** **** is *****, ****** **** *** ************* might ** *** ******* ******* ** it ***** ** **** ** * decline ** ****** *****.