Matomy Media’s new CEO, Sagi Niri, has made good on promises to shed at least $10 million of “non-core business by the end of Q3,” following rigorous restructuring in the wake of Ofer Druker’s departure.
The Israeli performance advertising company has sold a portion of its business to Dutch mobile marketing platform and business partner Creative Clicks, which will take on 60 of Matomy’s employees.
“This sale is another milestone in the implementation of our new focus strategy,” commented Niri, whose discharge of 10% of the company’s 400-strong headcount in May saw the company’s share price rise 1.7%.
The layoffs formed part of investors’ plans to exit Matomy from non-core activities before the end of the third quarter of this year in a bid to achieve a leaner more flexible cost structure with “immediate effect on overall profitability”, following a net loss of $11 million in 2016.
“We are glad that these team members have found a warm home, and wish the purchasers great success in developing the business,” Niri added.
The combined staff cutbacks through redundancies and transfers to Creative Clicks has seen Matomy’s overall headcount fall to 300 in just a few short months. In terms of the activity sold off, it includes the company’s desktop and mobile media-buying agency business for driving app download traffic.
“The activity being sold is based on third-party technologies, not ours, and includes more working hands,” said Niri to Israeli business magazine Globes.
“We are focusing on activities in which Matomy has unique technological platforms, and these are also activities relating to faster growing trends involving the digital industry, primarily video and mobile.”