Rubicon Project is to axe 19% of its global workforce amid continued speculation over its future, with the latest development coming as it revealed that revenues for the last quarter grew only 2% year-on-year to hit $65.8m.
The company included news of the “workforce reduction” – which will see it shed 125 staff members from its headcount – amid its latest Q3 numbers, which the company further forecast would cost it $4m in employee-termination benefits over the next quarter.
This workforce reduction is the continuation of a process that initially started in the second quarter of 2016, which Rubicon Project is calling “a comprehensive realignment of the business” that would better match its cost structure with its growth rate.
This all took place in what company chief executive officer Frank Addante called a “challenging quarter”, which it initially forecast during its previous results that saw almost $200m wiped off its stock price overnight. Although, Addante did add that it had “executed well against our key strategic drivers of mobile, video, orders and header bidding”.
He added: “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.
“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."
A more comprehensive breakdown of the company's quarterly results can be seen in the chart below. The company's board is also scheduled to field questions from financial analysts later today (November 2).
More to follow
The call can be heard here.