London

Layoffs at media company Diply blamed on changes at Facebook

Once named Canada's fastest growing tech and media company, London, Ont.-based Diply has laid off 40 employees from its three offices in London, Toronto and New York City.

The London-based company was named by Deloitte as Canada's fastest growing tech company last year

The view inside Toronto's Diply office (Colliers International)

Once named Canada's fastest growing tech and media company, London-based Diply has laid off 40 employees from its three offices in London, Toronto and New York City. 

In an email obtained by CBC News, the company's CEO explained the layoffs are the result of "serious issues in the market." 

"Over the past few months, Diply has faced some setbacks as we've worked at improving what we've offered our users," wrote Taylor Ablitt, a Western University graduate who co-founded the company in 2013. 

The forty staff members who were let go include employees who were creating video and developing social strategy. 

CBC News spoke to former employees who said Facebook's new algorithms, which prioritize friends and families over publishers and brands, may be the reason for the cuts. 

"We've continued to adapt to changes in this uber competitive landscape and that's what we've done again today," Ablitt wrote. 

CBC News has requested an interview with Diply but calls and emails have gone unanswered. 

Fast success

Diply rose to success in just five years as a digital media giant creating and aggregating video and clickable content geared toward millennials. 

In 2016, the company expanded from London, opening the New York and Toronto offices. At that time, Ablitt was reported as stating that Diply was averaging 20 million hits each day, making it one of the top aggregate websites in North America. 

A year later, in 2017, Deloitte placed the company at the top of its Fast 50 list of Canada's high-growth companies. 

In the July 25 email to remaining staff, Ablitt said he's confident about the company's future. 

"I'm confident that theses changes will set us up for the next phase in Diply's evolution." 

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