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Spot Runner confirmed late Tuesday it had made layoffs earlier in the day, the news of which was first reported by Valleywag but not in entirely correct fashion, according to a company spokesperson. The advertising platform let go of about 50 people, or 10 percent of its staff, said VP of corporate communications Rosabel Tao.
Tao said the company was hiring 40-50 people for newly created positions, resulting in a “net-even swap” of employees. While the layoffs were “in various departments,” she said, they were mostly related to an ongoing strategic shift to include advertising for national businesses. This is the department run by high-profile hire Joanne Bradford, who joined in March after leaving MSN.
Spot Runner, which has raised total funding of $111 million, has become a behemoth in its three short years — but perhaps its growth came too fast to be in control. Spot Runner had originally started with a focus on helping local businesses advertise on TV. While it still does that, the company also now provides national marketing and online advertisements.
Tao insisted the layoffs were part of a “natural course correct” as Spot Runner grows. “The timing of this given the economy, people can jump to conclusions,” she said. “But this is why we’re glad we raised so much money.”