In June 2023, Outbrain, an Israeli-founded recommendation platform for the open web, laid off around 90 employees, accounting for 10% of its workforce. This marked the second round of layoffs for the company, which has experienced a significant drop in market cap since its IPO and faces financial challenges. In this article, we'll discuss what happened, why it occurred, and the potential future impact of these layoffs on the industry.
The layoffs at Outbrain were driven by a combination of economic pressures, shifts in industry demands, and internal restructurings. The company reported a decrease in revenue of $22.4 million in the first quarter of 2023, primarily due to weaker demand on the platform and the impact of current macroeconomic conditions on advertising spend. In response to these challenges, Outbrain decided to streamline its operations and invest in targeted growth engines, which unfortunately led to the layoffs of around 10% of its global workforce.
In a statement, Outbrain acknowledged the rapid changes in the industry and sector, including reductions in personnel, and emphasized the need to adapt in order to continue leading the industry.
The company has taken steps to streamline its operations and invest in targeted growth engines. This strategic adjustment aims to improve Outbrain's financial health and position it for future success in the industry. The company's commitment to adapt and lead the industry suggests a proactive approach to navigating the current economic climate.
Outbrain's layoffs may signal a broader trend in the marketing industry, as companies face the need to adapt to rapid changes and streamline operations. The reduction in personnel could lead to shifts in industry dynamics, with a potential increase in automation and a greater focus on targeted growth engines.
Outbrain's layoffs, accounting for 10% of its workforce, were driven by economic pressures, industry shifts, and internal restructurings. The company aims to streamline operations and invest in targeted growth engines to improve financial health and remain competitive. These layoffs may indicate a broader trend in the marketing industry, with potential increases in automation and strategic shifts. Outbrain's future actions could involve further workforce adjustments and a focus on innovative solutions to navigate the challenging economic climate.
