Perion embarks on layoffs after revenue takes hit
Perion embarks on layoffs after revenue takes hit
The software company is eliminating 35 jobs to cut costs following Microsoft’s decision to change its advertising rules on Bing
Software company Perion Network has embarked on a streamlining and cost-cutting process after Microsoft changed the advertising rules on its search engine Bing, significantly harming the Israeli company's revenues.
As part of this streamlining, Perion will lay off 35 employees, most of them in the search division in Israel. This represents 15% of the company's Israeli workforce, which currently has 230 employees. In total, the company employs 650 people.
About two weeks ago, Bing announced it was completely removing several advertisers from its network. As a result, Perion's revenue from its collaboration with Microsoft will fall to less than 5% of its total revenue in the second half of 2024. Previously, revenue from this collaboration accounted for a large part of Perion's activity.
Perion notes that similar messages were sent from Microsoft to other Bing distribution partners. Following Microsoft's dramatic decision, Perion's revenues in the second quarter will be only $106-$108 million, and annual revenues will drop to about half a billion dollars.
In April, the adtech company issued a severe profit warning due to Microsoft's previous rule change in its Bing search engine. The American giant changed the advertising pricing mechanism for its distribution partners, affecting both productivity revenues and profitability.
