StumbleUpon has announced a restructuring effort effective immediately that will see the company shed 30 percent of their workforce. Eliminating 35 jobs will make the company profitable this quarter and allow them to operate more quickly and efficiently, according to a StumbleUpon spokesperson.
StumbleUpon CFO and interim CEO Mark Bartels told TechCrunch that the main goal is to become more streamlined and to better execute their goals for 2013. The landscape of StumbleUpon’s business model has changed so much in the past few years that a rebalancing of the entire engineering team was in order. Specifically, he said that 40 percent of the company’s traffic now comes from mobile devices.
The layoffs weren’t directed solely at engineers, however, as some people in non-technical divisions like marketing and community were also let go. But even despite the layoffs, Bartels noted that the company was doing extremely well financially.
StumbleUpon’s revenue stream has increased by 300 percent over the past few years, according to the executive. The service has more than 80,000 paid advertisers including some big names like Kraft Foods and Proctor & Gamble.
That said, the additional profitability could open up a lot of new doors for the company. The first thought that might come to mind when making such a move is aligning for a buyout. Bartels said that was not a priority at this point but the profitability does allow them to experiment more. The short-term plan is to continue to grow moving forward.
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