OpenX Technologies today announced it has laid off about 100 members of its global staff. Job losses appear to be the latest in a comprehensive reform process.
The supply side company announced the layoffs, which affect its offices in New York and Pasadena, California, and come as part of a global reorganization that began earlier this year and also included the closure of Santa Clara, California. Office. Headquarters. center.
These include the integration of OpenX engineering and technology offerings at global centers, located in Pasadena and Krakow, Poland, where the company's workforce will double next year.
It is not clear how many people are working on OpenX after today's reductions – its current Crunchbase file is 500-1000, but a spokesman noted that the ad technology unit is actively recruiting more than 13 jobs.
The company's statement, which was sent to Adweek, indicated that OpenX was in its fifth consecutive year of profitability and that more formal announcements on product offerings and partnerships would come early next year.
"The 2019 year will be the main investment in OpenX in terms of product, partnerships and geographic expansion," the statement said. "We have realized early on that this requires diversifying our core businesses and increasing investment in growth areas … We are now working from a simpler organizational structure to enable us to continue to succeed in the market."
In particular, these moves are believed to help the company to position itself as it seeks to double the video and reduce its dependence on ad exchanges, an area of advertising technology widely believed to be a commodity.
Speaking on similar measures elsewhere in the technology sector, Jay MacDonald, Managing Partner of Digital Advisors, said the focus on profitability was a "smart move" given the desire to achieve a return on investment among the difficult companies that were Early invest in advertising technology.
"There are three things that drive mergers and acquisitions in space: size, synergy and profitability," McDonald said. "We are in a time in the market when everyone is on sale at the right price and if you are not profitable you will reach a place where investors tell you to find a house [by way of a fire sale]"He said.
"When you also address the transition from managed to self-service, many of these companies … must be accommodated, and not everyone in each team can make the transition," said Matt Brohaska, chief executive of Prohaska Consulting.