HUSSLUP founder and CEO H. Schuster notified users on Wednesday that the company would be going on an “indefinite hiatus,” starting Friday, according to an email reviewed by TechCrunch. The job-search and networking app for the entertainment industry launched to the public in January after being in invite-only beta for the past three years and has 15,000 members.
In an email to users, Schuster said the entertainment industry is going through “incredibly challenging times.”
“I am deeply committed to HUSSLUP's mission and am heartbroken that we will not be able to help you through this difficult time for the entertainment industry. I know many of you are also struggling with the downsizing of our industry. I wish you all the best in your professional endeavors,” Shuster wrote.
Despite a slight increase in employment, Hollywood's unemployment rate remains higher than it was two years ago. In June, the number of employed people in the entertainment industry in Los Angeles hit the lowest level in more than 30 years, according to 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 employment can be attributed to several factors, including the aftermath of the 2023 WGA and SAG-AFTRA strikes and major studios such as Amazon, MGM Studios, and Pixar making massive layoffs in an attempt to cut costs. Investments in AI tools to make film and TV production more efficient may also have contributed to the decline.
“The strikes and industry contraction following the 'Streaming Wars' have made it difficult for us to grow revenue and raise capital, forcing us to close our doors,” Schuster said in a statement to TechCrunch. “We understand this is also a challenging time for our members, and we strive to be transparent with them.”
It's also a tough time for startups in general, with many struggling to raise new capital. Schuster said the company “tried everything in its power to raise capital to avoid this shutdown.” In 2022, HUSSLUP raised $2.5 million in funding, following a pre-seed round the previous year.
The company hopes to relaunch once the industry (hopefully) recovers.
This unfortunate news comes a week after HUSSLUP announced Greenlight Studio, a new AI-powered studio that offers features like “Full Script Assessment” to help screenwriters improve their scripts.
The company said the app will be taken offline at 8 a.m. PST on Friday and all user profile data will be deleted, but HUSSLUP has created a new Facebook group to keep members connected.
Editor's note: This story has been updated with Schuster's statement.