International affiliate network Pepperjam is laying off 20% of its staff across its six offices, according to press in Wilkes-Barre, the home of its US headquarters and more than 100 of its staff.
Speaking to the Times-Tribune, senior director of marketing Tara Siegel could not provide specific numbers on staff facing redundancy, but claimed it was “it was strictly a business decision that we had to eliminate some positions” to reduce operating costs in line with revenue.
It’s estimated that Pepperjam employed 300 people as of April 2017 across US offices in Conshohocken, Tempe, Santa Cruz, and internationally in Toronto and London.
With the largest number of staff housed at its headquarters, the network’s spokesperson told local press it was “logical” that Wilkes-Barre would feel the brunt of the action, adding that Pepperjam would be ready to show the plan for its reorganisation “to the world” soon.
UK MD departs
The reports come amid the departure of Pepperjam’s UK managing director Derek Freer to competitor Webgains without a direct replacement announced. Freer served as MD for two years following the network’s purchase by eBay Enterprise Marketing Solutions and subsequent rebrand, having been employed by the company as AffiliateTraction since 2013.
It’s as yet uncertain as to whether Freer’s departure is indication that Pepperjam’s UK offices will be affected by the wider cut to operating costs, or whether the rumoured departure of chief technology officer and former AffiliateTraction CEO, Greg Shepard, spells worse to come.
Backed by a number of investors, Pepperjam became independent in November 2015, making a series of sales for parts of the business, amounting to around $925 million, putting the group in “leaner” form to take on the role as full solutions performance marketing network.
The network acquired AffiliateTraction in 2016, then one of the US’ largest affiliate agencies, drawn to its publisher discovery and attribution tech; the group also purchased AdAssured, a compliance solutions company founded by Shepard himself, later the same year.