Magnite, an Adtech company, is cutting 60 jobs, which amounts to approximately 6% of its total headcount. This comes two months after it acquired SpotX, a rival in the $1 billion deal.
According to someone with direct knowledge of the matter, staff learned of the layoffs today. The reductions are due to Magnate’s purchase of SpotX in April.
Magnite employs approximately 974 people, including SpotX employees. The cuts will affect both companies, according to a person who is familiar with the matter. The insider also found a Magnite document that outlines the details of Magnate’s decision to eliminate 45 positions across both companies.
SpotX acquisition confirmed that Magnite is cutting its workforce by 60 employees, according to a spokesperson.
The spokesperson stated that the Magnite team had grown by more than 70% since the acquisition. “We are currently in rapid growth mode, and remain bullish about our prospects.”
Magnite stated in February that it anticipated making $35 million in cost savings when it announced the SpotX deal. More than half of these savings would be realized within the first year. Magnite CEO Michael Barrett stated that these savings would likely be in facilities, software licenses and headcount reductions. However, he stressed the importance of growth over reducing costs.
Magnite is a technology company that sells publishers programmatic ads for websites and apps. As part of its push to expand into the rapidly growing connected-TV space, Magnite acquired SpotX from European broadcaster RTL.
Numerous top SpotX executives are moving to Magnite, where they will be starting in July. Sean Buckley, the former chief operating officer at SpotX, will be chief revenue officer for Magnate’s CTV division. Magnate’s chief technology officer J. Allen Dove will also be taking on the same role. In the meantime, Tom Kershaw, the long-serving CTO of Magnite, is retiring. Mike Shehan, the former SpotX CEO, has taken up a consulting role until the end.
Magnite, formerly known as Rubicon Project, laid off 8% of its employees last May after acquiring video ad tech specialist Telaria. This was in response to the COVID-19 pandemic and the need for a strong adtech sector. Magnite previously stated that the Telaria merger would reduce the combined company’s cost by $15 million to $20 million.
Magnite is one of the largest public adtech companies and has been a part of the sector’s stock market recovery in recent months. It has benefited from covid-accelerated trend shifts such as the shift towards digital content consumption.
Several other adtech companies, including PubMatic and Viant, have also gone public to capitalize on similar growth.
On Thursday, shares in adtech companies such as Magnite, The Trade Desk and Criteo were trading strongly up following news that Google will delay its plan to eliminate ad-tracking tracking cookie in its Chrome browser for more than a decade.