OSOM Products, the privacy-focused smartphone manufacturer, will shut down soon later this week, according to multiple sources. The news comes just days after the company became embroiled in a legal dispute with a former executive.
OSOM, founded in 2020 by former Essential employees, aimed to create products that prioritized user privacy. Their flagship device, the OSOM OV1, was designed with a host of security features. However, the company faced significant challenges, including a failed partnership with Solana and a lack of funding.
Financial difficulties plagued OSOM throughout its existence. A failed partnership with cryptocurrency platform Solana and unsuccessful attempts to pivot into other markets contributed to the company’s downfall. The company’s funds had dwindled to a point where layoffs and eventual closure became inevitable.
OSOM shuts down soon after business struggles
The company’s downward spiral worsened after Solana’s decision. OSOM made attempts to recover, including a pivot toward AI-powered products and seeking potential buyers like HP. Unfortunately, neither of these strategies succeeded, and OSOM’s financial situation became increasingly dire. By the middle of this year, OSOM had exhausted most of its resources.
According to internal sources, OSOM executives recently held a meeting where they announced the decision to shut down soon. Most employees will be laid off this Friday, though some engineers will remain temporarily to fulfill contractual obligations related to the Solana Saga phone.
In addition to its financial woes, OSOM has faced legal troubles. A lawsuit filed by former Chief Privacy Officer Mary Stone Ross accused OSOM’s CEO, Jason Keats, of financial misconduct. The lawsuit alleges that Keats’ questionable spending habits contributed to the company’s downfall, though Keats denies these claims. OSOM has stated that the company is prepared to address the allegations in court.
Most employees will be laid off by the end of the week, it seems
The combination of legal challenges and failed ventures has culminated in OSOM shutting down soon, with most employees being laid off by the end of this week. Employees are expected to receive severance and COBRA health insurance options, standard practices in mass layoffs.
While the company is shutting down, a handful of engineers will remain on contract for a short period to ensure the final updates to the Saga smartphone are completed by December. After that, the remaining employees will likely join the ranks of the recently laid-off, ending the OSOM chapter for good.
2024-09-05 15:06:46