Rubicon Project announces staff cuts following earnings announcements
Ad marketplace Rubicon Project has announced 125 layoffs. That’s roughly 19% of the company’s total staff count. The move is in line with the company’s strategy to realign its core business areas and focus on growth.
Rubicon Project to lay off 125 members of staff
The announcement was made during the company’s third quarter earnings report. Overall, Rubicon Project increased revenues by 2% to $65.8m in the third quarter and slightly exceeded analyst expectations.
Rubicon Project Q3 2016 results
The layoffs are affecting Rubicon Project’s sales teams, marketing and administrative areas. Earlier this year, the company merged its advertising and publishing sales arm into one, so the move may not come as a surprise to everyone given the progressive slimming of its separate operations.
For the last quarter of the year, Rubicon Project expects a revenue growth to $75.
Frank Addante, CEO, Rubicon Project, says:
“As expected, Q3 was a challenging quarter for both our industry and our business in particular and we still have work to do to deliver the revenue growth that we know our business is capable of generating. We remain confident that the strength of our premium technology platform, our global presence, and strong balance sheet uniquely position us to win in the market and we expect these strengths to propel our business to stronger long term growth in 2017.”
During the earnings call, Addante also admitted that last year’s acquisition of retargeting firm Changgo did not quite work out as planned.
He also spoke about the competiton in the market saying:
“They are primarily US-focused, primarily header bidding focused. They don’t have an orders platform, or global reach and scale. They haven’t made the same investments on security and brand protection, and they don’t have the balance sheet and profit to [continue to invest in growth areas.]”
Stocks plummeted 11% post-trading.