Mobile video ad company AdColony is preparing to let go of over 20 per cent of its workforce – around 125 employees – as it continues its shift in focus toward programmatic.
The majority of those laid off will come from AdMarvel, the mobile ad tech company it acquired in 2010. In shutting down the AdMarvel platform, AdColony will exit mediation, ad serving, and white label tech licensing. The only area of AdMarvel that will continue to operate is its exchange, but it will be integrated into the AdColony platform.
AdMarvel will continue to operate until May 2018, as AdColony still has partners that use the platform, but it will work with these publishers to migrate off of it.
“In addition to exiting these AdMarvel businesses, we plan to migrate off all legacy platforms and shift our business onto the AdColony platform,” said Will Kassoy, CEO of AdColony. “These moves will enable us to streamline our operations, focus our business onto the AdColony platform, and ensure that our business is centred around the direct supply and creative solutions the AdColony SDK unlocks for us.”
The remaining staff of over 400 employees will be dedicated to growing the more streamlined operation through its focus on mobile video, performance, and programmatic. The latest batch of layoffs follows the 100 people AdColony let go back in July.
“We have a number of team members who work on ad serving and mediation, and there are also people who work on non-AdColony platforms today, so as part of our shift in strategy, we will be making some changes and letting people go,” said Kassoy. “This is a tough decision, but we feel like it is the right one for our company, and our remaining staff of over 400 people will be set up to focus on the areas where we see the most growth potential.”