Rubicon Project, the online ad company, has just axed 100 jobs in an effort to reduce costs. Following a reduction in revenue of 57% year-on-year in Q4 2017 and a net loss, the company decided to take the drastic measure.
Overall, revenues in Q4 2017 were down to $31.4 million from $72.7 million for the same quarter in 2016. Total revenue was 44% down compared to 2016.
“We made significant strides to strengthen our competitive and financial position during and after the fourth quarter,” explained Michael G. Barrett, president and CEO of Rubicon Project. “As our industry moves through a heightened consolidation phase, we continue to lead in transparency, trust, support and technology, all with extremely attractive pricing, to win business with buyers and deliver meaningful revenue growth for our publishers.
In addition to the reduction in staff, the company also plans to decrease capital expenditures by $20 million in 2018. Other operating efficiencies will also be implemented.
“2017 was a year we invested heavily to position the company for growth and in 2018 we have now taken significant steps to reduce our operating costs and capex. The result of recent double-digit ad spend growth, combined with today’s cost reductions are intended to put us on strong financial footing and make us adjusted EBITDA positive in Q4 of 2018,” Barrett added.