The problem was the company didn’t have the resources or knowledge base to make that huge shift.

“I equate it to turning a restaurant into an accounting firm,” said the ex-employee.

The source said the company became focused on Butler’s mission and didn’t listen to what other executives at the company were saying about sticking to what the company did best.

Under Butler, Branded Entertainment Network rebranded twice, first as BEN Group and then BENlabs. He stated that the marketing team was fired and hired numerous times and many people didn’t know who the marketing team was.

According to the employee, the AI venture was “extremely challenging and extraordinarily expensive,” so much so that it required an infusion of money from Gates Ventures to keep it going.

The employee said the company didn’t communicate what was happening, so there was no time to prepare for the end. He said that the company eventually stopped paying some creators, influencers and vendors.

The employee said that this layoff resulted in half the staff being laid off, but there were a couple of layoffs before this one, so he believes the number is higher.

A second source who formerly worked at Branded Entertainment Network and is familiar with the recent happenings at the company confirmed the ex-employee’s statements.

Sheffield’s email ends recognizing that the path forward will be difficult.

“For those who will remain with the company, I would ask that you use the days and weeks ahead to join me in expressing empathy and gratitude for our friends and colleagues who will be departing.”

ADWEEK reached out to BENlabs and the company referred to its latest LinkedIn post.