Medium started off on a bad note in 2017. The start-up is sacking 50 employees. The payroll reduction will be in the company's non-engineering roles. It is also closing down its Washington DC and New York offices. Ev Williams, the company Chief Executive Officer, revealed this news through a blog post. He took an optimistic view about this event, saying that the sacking was done as a part to renew Medium's focus. He added that these firings are a component of a bigger plan to move the business model of the company.
Not like other platforms
Medium is evidently trying to avoid mistakes done by other blogging platforms. The latter, in order to be profitable, has encouraged their authors or publishers top concentrate on page views and reach. This move, they had reasoned, will lead to higher advertising revenue. It was seen that the fine art of storytelling and quality information went out on a toss during this phase. The company has a number of competitors. The list of competitors include individual creatives and publishers. Blogging platforms comprise competition as well. Patreon is a notable competitor. It is a mix of blogging and crowd-funding platform. The latter enables subscribers to pay directly to creatives prior to publishing news features or anything online. Patreon also publishes web comics.
Medium has earlier successfully raised about $132 million. This was done through three venture funding rounds. The list of venture funds which put money into the venture includes Greylock, Spark Capital and Andreessen Horowitz. The company collected $57 million in Series B funding. The Series C funding collected about $50 million. This further injection of cash was done by the company to enjoy additional funds for blostering resources. This was needed to build the company vision. Spark Capital led the Series C round. The company has earlier put money on Twitter. Kevin Thau of Spark had justified the investment in his blog post. He said that an opportunity exists for increasing social media experiences. He contrasted the timeless and thoughtful nature of Medium with Snapchat's ephemerality.
The Medium CEO, in his blog post, said that the company has grown almost 300 percent YOY when it came to readers and the posts published, during the 2015 to 2016 period. No information was provided on matters of revenue or any other metrics. The company executives and investors were not available to comment on the matter.