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Revenue woes lead Hipstamatic to lay off all but 'core team' of employees

In the wake of Instagram's iOS and Android app updates, rival photo app Hipstamatic has laid off its entire staff.

iOS engineer Jonathan Wight tweeted the news, writing, "So in case you didn't get the memo. Entire team laid off. 3 devs, 1 designer, 1 writer. Some of THE best people I've ever worked with."

Hipstamatic did not immediately respond to requests for comment, but confirmed the changes to the Next Web, which printed a statement from Hipstamatic.

"We're heads down focused on making beautiful, creative and fun products for our community and the world," the company said. "We'll definitely be excited to share what's next when it's time."

According to TechCrunch, other members of the now-defunct team include iOS engineer Justin Williams and designer Stuart Norrie, all of whom received a severance package.

Following iOS/Rails engineer Kevin Smith's exit earlier this week, a source tells TechCrunch that outside of the "core team" of Hipstamatic employees, everyone, including the office manager and social media manager, is being let go.

"Instagram releases version 3.0. Hipstamatic fires all of its engineers. Hilarious," Nothing Magical developer and designer Sam Soffes tweeted.

Hipstamatic was working on a new release, the Next Web reported, which would integrate different types of photo-app features, like private sharing, into one program.

Currently ranked number 98 among Apple's top paid iPhone apps (it costs £1.49 to download), the Next Web reported that the company "hasn't been making enough money," and is looking for a new way to build revenue. Previously, in-app "film" and "lenses" purchases helped drive costs into the company.

Hipstamatic isn't the only photo-sharing app to be squashed by the long arm of Instagram.

In June, PicPlz announced that it would shut down on 3 July, but is allowing users to log in to reclaim saved photos before flushing its system on 3 September.