Perion Network Layoffs: Israel-Based Digital Ad Company to Lays Off 35 Employees Amid Cost-Cutting and Bing Search Engine’s Changed Pricing Mechanism
Perion Network announced to lay off its 6% of the workforce due to cost-cutting measures. The Perion Network layoffs. announced due to Microsoft's pricing policy change, would affect around 35 employees.
Holon, June 26: Perion Network is an Israel-based digital ad agency that has started laying off employees due to cost-cutting measures. The Perion layoffs will reportedly impact around 35 employees in the ad agency. The job cuts at Perion Network would reduce around 6% of the workforce. Perion Network has around 561 employees, of which 235 are based in Israel.
The dismissal of the 35 employees by Perion Network is a part of the company's streamlining and cost-cutting process, according to a report by Globes. The report mentioned that the Israel-based digital tech and ad agency company had been re-examining its organisational structure, particularly in the CodeFuel search division. The activities in this division were reportedly scaled down as Microsoft changed its rules of the Bing search engine. NIT Calicut Layoffs: National Institute of Technology Calicut Planning To Lay Off Hundreds of Employees Under New Policy, 300 Families Likely To Be Affected.
The report said that in the past few months, Microsoft made core decisions that negatively impacted Perion Network's revenue. The Israel-based tech company announced that Microsoft Bing was excluding certain numbers of publishers from its search distribution marketplace. It said that some of these publishers worked with Perion Network. Microsoft's action would affect the company's revenue and lead to a 5% reduction, said Perion Network.
Perion Network's streamlining plan aims to help the company focus on expanding its primary growth engines, which would include DOOH (Digital Out-Of-Home) advertising and AI-based advertising on smart TVs. Perion Network's CEO, Tal Jacobson, introduced revised revenue guidance down from the previous quarter. The report said that the company had around $118 to $122 million, which now has been revised down to $106 to $108 million.
Israel's Perion Network ran into the same problem a few years ago with Google when it changed its pricing policy. At the time, the report also mentioned that the Perion Network's revenue was affected. This year, Israel's two more companies laid off employees. These included Bluevine, which laid off 12% of the workforce, and Moovit, which let 10% of its workforce go.
(The above story first appeared on LatestLY on Jun 26, 2024 07:48 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).