Permutive, a UK-based adtech company, has announced that it will lay off nearly 80 of its staff, which is around 40% of its headcount. The decision follows prolonged economic challenges, which have led the company to prioritize profitability and focus on its existing customers. The company has entered a formal consultation process with its UK staff, in line with UK employment laws. It has also stated that it will conduct similar processes for international employees, as required by local laws.
In August last year, the company made 30 redundancies due to over-hiring in certain areas “ahead of revenue,” according to CEO Joe Root. The latest round of layoffs is attributed to the slowdown in digital ad spending in 2022 and 2023, which has affected companies across the industry. The trend followed a post-pandemic rebound in 2021 that did not retain its velocity when consumer behavior returned to normal.
Rising interest rates and inflation have also led to higher costs for businesses, while venture capital funding has decreased. Permutive has raised $105 million in funding so far, with SoftBank, EQT Ventures, and Octopus Ventures among its investors.
Permutive works with publisher clients such as Insider, The Economist, and Condé Nast to organize their audiences into anonymized cohorts for advertisers to target. It also offers data clean room technology that helps advertisers and publishers match their data in a privacy-controlled environment. Root stated that the company’s changes will focus on the capabilities its customer base needs now and in the future to stay ahead of industry changes.
In accordance with UK employment law, the company will consult with employee representatives over redundancy plans since it is laying off more than 20 staff. The company will also adhere to local laws in conducting similar processes for its international employees. The company has not disclosed the exact numbers or divisions affected by the layoffs.