HUSSLUP founder and CEO H Schuster notified users on Wednesday that it would be taking an “indefinite hiatus” starting Friday, according to an email seen by TechCrunch. The job search and networking app for the entertainment industry was launched to the public in January after being in an invite-only beta phase for the past three years and has 15,000 members.
In an email to users, Schuster noted that the entertainment industry is experiencing an “incredibly challenging time.”
“I am deeply committed to HUSSLUP’s mission, and my heart is broken that we are unable to survive this challenging time for the entertainment industry. I know that many of you are also struggling during this industry contraction and I wish all of you success in your professional endeavors,” Schuster wrote.
Despite a slight uptick in jobs, the unemployment rate in Hollywood is still high compared to two years ago. In June, the number of people employed in the entertainment industry in Los Angeles hit its lowest point in over 30 years, per the U.S. Bureau of Labor Statistics. The Art Directors Guild reported in May that 75% of its 3,000 members were unemployed.
The decline in jobs could be attributed to several factors, including the aftermath of the 2023 WGA and SAG-AFTRA strikes, as well as significant layoffs at major studios such as Amazon, MGM Studios, and Pixar, as they look to reduce costs. The investment in AI tools to streamline film and TV production may have also contributed to this decline.
“The strikes and industry contraction post ‘streaming wars’ has made it challenging for the company to drive revenue and raise money, which has made it necessary to take a hiatus,” Schuster said in a statement to TechCrunch. “We know this time is challenging for our members as well, and we are trying to be transparent with them.”
It’s also a difficult time for startups in general, as many have struggled to attract new capital. Schuster says the company has done “everything in our power to raise funds to avoid this shut down.” In 2022, HUSSLUP raised $2.5 million in funding, following a pre-seed raise the year prior.
When the industry (hopefully) bounces back, the company hopes to relaunch.
The unfortunate news comes a week after HUSSLUP announced its new AI-powered studio, Greenlight Studio, which offers features like “Full Script Assessment” to help screenwriters improve their scripts.
When the app goes on hiatus at 8 a.m. PT on Friday, the company says all users’ profile data will be deleted. HUSSLUP created a new Facebook group, though, to help its members stay connected.
Editor’s note: This story was updated with a statement from Schuster.
Source : Techcrunch
