Social video startup Viddy lays off over a third of its workforce

It has been less than year since Viddy, often described as the Instagram of video, was seeing massive user growth and a rise in revenues. But the company appears to be taking a step back as it redefines its mobile video business.

Viddy has cut 12 positions in its marketing and operations unit, though the company's core engineering team has remained untouched by the layoffs. The job cuts, which reduced Viddy's workforce by almost a third, comes less than a month after the dumping of co-founder and chief executive Brett O'Brien for allegedly turning down a buyout proposal from Twitter.

"These changes [job cuts] will allow the Viddy team to be focused on bringing the most innovative and engaging social mobile video product to market," a representative from Viddy said in a statement.

"Viddy has a strong balance sheet and an exciting product roadmap ahead, including an upcoming new product release," the statement added.

Viddy lets users capture and share 15-second video clips using their mobile devices, with the additional option of enhancing them with audio and video filters. In December 2012, the company announced that its user base had surpassed the 40 million mark.