Rubicon Project Cuts Workforce by a Fifth

Rubicon ProjectAd marketplace Rubicon Project has posted its financial results for Q3 2016. Revenues for the quarter stood at $65.8m (£52.7m), up for two per cent year-on-year, with profits of $3.5m, up 217 per cent.

Off the back of these results, however, the company also announced a 19 per cent cut in its workforce – totalling 125 employees.

The cuts are part of a comprehensive realignment of the business which began last quarter, according to Rubicon. The company has consolidated its buyer and seller sales divisions into a single global revenue team, as well as folding together product and engineering into one team.

Rubicon says it expects a cost of $4m (pre-tax) in termination pay-outs to these employees, but an annual cost reduction of $18m. It has also implemented other cost control initiatives that it anticipates to save a further $12m annually.

“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,” said CEO and founder Frank Addante. “We remain confident that the strength of our premium technology platform, our global marketplace 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.”