Tango was born seven years ago with a simple mission: to make it easier for people to communicate with the ones they love. And we’ve succeeded beyond expectations: today there are more than 350 million registered Tango members around the world.
However, it’s important to remember that, when we launched Tango, we had a second important goal: to create a sustainable business. And on that score, while we have made considerable progress, we still have more work to do.
Since I took over as CEO a few weeks ago, I’ve taken a hard look at everything we do at Tango in order to set up the company for long-term success.
Last week, we announced a major strategy shift: We’re refocusing our flagship Tango app back on mobile messaging, while splitting off social networking features into a new app called Fiesta, which is off to a great start.
Today we’re taking additional steps to set up Tango for long-term success by making the tough, but necessary decision to restructure the team. A recent review of our operations and finances made it clear to me that we need to align better our expenses with our revenue. To that end, we are reducing headcount in our Mountain View headquarters.
Obviously, this is a difficult day for all of us at Tango. I am saddened to see many of our colleagues and friends leave the company. We have worked to provide everyone with severance packages, we are offering them as much support as possible on finding new positions, and I want to express our gratitude for their hard work.
In addition to the staff reduction that accounts for 20% of our team globally, we are taking other steps to tighten our operations and to reduce our costs. While Tango remains well-funded, we need to be nimble – and we need to preserve our strong balance sheet as a strategic asset to invest in new growth opportunities as they emerge. All told, the actions we’re taking today should leave Tango well-positioned to take advantage of the substantial opportunity ahead of us in both mobile messaging and social networking.
Tango operates in a rapidly evolving and highly competitive marketplace – the players in mobile messaging and social networking include some of the largest technology companies in the world. But the opportunity is vast and Tango has a different approach and a strong group of loyal members. As I noted in announcing the launch of Fiesta, we are jazzed about the future of the company. The actions today are an important step to build a successful future.