Video Startup Veoh Cuts 18% of Staff

Online video site Veoh is laying off 20 people, or 18% of its staff of 110. The move comes a month after a Paidcontent reported layoffs in Veoh's Russian office in St. Petersburg, which CEO Steve Mitgang says was a strategic decision rather than a financial one, as Veoh wanted to move its development staff to San Diego (where it has hired a replacement team). This round is more of a financial move, given the new economic reality. The company insists that it is still strong on a financial front, and expects to be profitable next year, although CEO Mitgang admits profitability could be pushed out a quarter. Despite the somber news, he is confident Veoh will emerge as one of the few surviving video sites in what will no doubt be a coming shakeout.