UPDATED: Revision3 Makes Layoffs, as Does Smashface

This story is developing. We’ll get you more information soon.

Update 1: Revision3 has made layoffs, canceled some of its original shows, and discontinued its two new distribution agreements. The online video studio will no longer make Pixel Perfect, PopSiren, and Internet Superstar (the latter two were newer shows made by full-time Revision3 employees Sarah Lane and Martin Sargent), saying the shows didn’t find an audience to drive revenue. It will also no longer distribute EPIC FU (as of mid-December) and Wine Library (as of today), which it says don’t fit into long-term plans.

“Even though we’re sad to see these shows end on Revision3, in today’s economic climate it’s essential for us to focus on what we do best, and where the best opportunity for success lie,” Louderbeck wrote in a blog post announcing the changes.

The company will continue to put resources into expansion efforts, such as its Revision3 Beta, which aims to build audiences for the independent video shows it recruits.

Revision3’s layoffs are already having ripple effects. EPIC FU is made by Smashface Productions, which said today that in light of the decreasing licensing revenue from Revision3, as well as downturned advertising revenue, it has also made layoffs. The company dropped two producers and an editor.

Update 2: While Revision3 declined to officially comment on the number of layoffs, we hear they amount to about a third of the company. Those laid off include employees involved with the canceled shows, including both Lane and Sargent. They also include Damon Berger, who previously led creative and business development.

Update 3: More names of those laid off from Kevin Rose’s blog: Jay Speiden (writer, producer, host), Glenn McElhose (“Hippy Glenn”/Revision3 mascot) and Heather Frank (senior producer).

Disclosure: Revision3 produced The GigaOM Show.