In another sign of the impact the coronavirus pandemic is having on the ad-tech industry, supply-side platform OpenX has undergone a round of cost-saving measures, including furloughs and salary reductions, to help it stay afloat.
OpenX CEO John Gentry said in a blog post today that the company has reduced compensation across its leadership team by between 15% and 20%; laid off, furloughed or reduced hours for roughly 15% of the company’s workforce; and realigned its “market-facing teams” to increase focus on the demand side of its business.
Most business units, minus the buyer development team that works with brands and agencies, were impacted by the cuts, according to a company spokesperson, who clarified that OpenX now employs more than 200 people following the cuts.
“Unfortunately, we don’t believe that advertising spend will return to the levels we had prior to Covid-19 in 2020 or early 2021. As a result, we have made changes to position the company for success and resilience during this downturn, ensuring we can continue to focus on investing in our products for publishers and marketers,” Gentry said.
OpenX is the latest in a growing line of ad-tech companies to either reduce staff or cut salaries in light of the pandemic, which has seen publishers’ revenues dwindle as marketers are forced to pull back spend.
OpenX had been bracing for a potential downturn in business while also trying to reassure publishers that they’ll get paid. Earlier this month, the company revealed it had taken out insurance on 87% of its DSPs.
Gentry said OpenX remains well positioned to navigate the pandemic despite the cuts.
“While these changes are a necessary move for OpenX as we adapt to an unprecedented global pandemic, we recognize how hard this is for our team members, especially in the current environment.
“We are incredibly sad to say goodbye to them, and we will do everything we can as a company to help them land new opportunities in this tough time. While our working relationship may have ended, we hope the many personal relationships we have developed together will remain in place for years to come,” he said.