AppNexus restructure results in 150 redundancies

AppNexus is de-siloing its operations

Adtech outfit AppNexus is carrying out an overhaul of its operations in a move that will see it implement 150 redundancies across the globe, taking its headcount to beneath 1,000.

The move will effectively see AppNexus de-silo, with the company moving from an operation that was previously split between its buy- and sell-side activity, to one that is more homogenized.

A company spokesman told The Drum the resulting reorganization would have resulted in duplication of labor in several areas of its operations – hence the “unfortunate” redundancies – and that the overhaul was partly reflective of adtech becoming more mainstream in the media industry.

Cuts are to be made in the adtech outfit’s sales, and account management operations, with its total headcount now more concentrated in its US-base as a result of the series of lay-offs, which the spokesman said would give it a “single unified function”.

The spokesman added: “About two year’s ago we divided the company into two business units … so we’d have a publisher technology group and an advertiser technology group. So we’d have two separate teams of engineers, and two separate teams of business development professionals and account management teams.”

The move towards a more homogenized structure is reflective of the fact that AppNexus’ clients are increasingly using the company’s offerings for both buying and selling media (whereas previously they tended to utilize one function, or the other).

The spokesman explained further: “The distinction for us between buyers and sellers has faded away over time, so it’s becoming difficult and counter-intuitive to have two account managers for a client, and then have two product and engineering teams … sometimes it can result in redundancy of effort.”

The move comes just weeks after the adtech outfit announced an investment round round of $30m – with News Corp putting $10m to that amount – and speculation continues to mount over whether or not AppNexus will make an initial public offering (IPO) in the near-to-mid term future, after it reportedly filed an S1 document earlier in the year.

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