Mobile ad firm Kargo lays off 15% of workforce and refocuses on programmatic advertising

Kargo, the mobile advertising company has axed 40 staff. In an effort to change it original advertising model, the company will transfer a majority of its UK members of staff to Sublime Skinz, the digital advertising network.

Kargo made the move in an effort to move away from a managed service model to focus on programmatic buying instead.

The lay-offs actually happened during April, according to The Drum. The number of staff axed represents 15% of Kargo’s workforce. In addition, the company has already started to re-staff by hiring data scientists and software engineers. Although these changes are predominantly happening in the US, they may affect other regions too.

However, the company is also separating its Europe operations to transfer around 75% of London staff to Sublime Skinz. The workforce left at Kargo’s London office including its VP of global operations Arthur Cole will oversee its relations with Sublime Skinz.

Harry Kargman, CEO of Kargo, explained:

“It is really clear that we are moving people and resources out of the manual ad network business model, moving them toward running high-end creative, programmatically, and automating the Kargo business. The key here is we are not buying inventory on the open echange. Kargo has directly inserted our code into the pages of these publishers.”

The updated business model will focus on acquiring ads from premium publishers through private marketplaces. Additionally, Kargo plans to partner with Innovid to develop new advertising units.

It’s unclear how GDPR will affect any of these upcoming changes.