Marchex, the advertising analytics firm, has laid off around 10% of its workforce following a tough quarter. The company had reported a loss of $68.8m for the second quarter 2016.
Marchex lays off 40 employees
The Seattle-based company confirmed the move on Friday, laying off 40 people across various departments.
Peter Christothoulou, CEO, Marchex, said:
“This was a painful decision that required us to reduce our workforce to bring our expenses in line with revenue. Despite these challenges, we are focused on executing on our opportunity and leading this market. I have every ounce of confidence we are taking the right steps to get there.”
The company now has 335 employees following the cuts, which were in line with cost cutting measures to meet financial goals, according to a spokesperson.
Marchex stocks dropped 17% following the earnings report. The mobile analytics firm also noted a small number of clients making adjustments to their marketing budgets. Christothoulou adds:
“These changes affected us in Q2 and also limit the growth we expected in the second half of the year. This is the principal reason for our revised 2016 outlook. We have historically relied on a small number of large multi-million dollar clients to generate a significant portion of our revenue. As a result, we are susceptible to marketing budget fluctuations from a handful of clients, which is what impacted our call marketplace.”
The company is currently valued at $128m.