Criteo is preparing for cookieless and laying off 140 employees

  • #Criteo, a major player in the AdTech industry, has announced layoffs affecting up to 4% of its staff, which could impact around 140 employees.
  • The layoffs are linked to plans by #Google to eliminate third-party cookies in the Google Chrome browser, which is expected to reduce Criteo's revenues by $30-40 million this year.
  • The company is striving to optimize operational efficiency and is focusing on developing new areas, including #Retail Media and CTV.

Founded in Paris in 2005, Criteo is known as a leader in retargeting but has been pivoting towards new technologies with tightening privacy laws and changes in the tech landscape, offering retailers tools to sell advertising on their platforms.

Despite efforts to diversify, a significant portion of Criteo's revenue still comes from retargeting, which is expected to begin losing effectiveness in the coming months due to changes in Google Chrome's cookie policy (#cookieless).

Stocks

As a public company, Criteo is subject to the impact of marketing decisions and external market forces. Criteo's shares are currently trading at around $35, significantly below the historical high of $59 reached in 2014. This decline reflects not only the current challenges the company faces but also the growing concern among investors about the future of AdTech amid rapid industry changes.

Furthermore, this is not the first time Criteo has reduced its workforce. The previous round of layoffs took place in February 2023. One shareholder wrote an open letter to Criteo's leadership urging the company to conduct a "comprehensive strategic review, including an assessment of all assets."

Important for Publishers

The layoffs at Criteo signal to publishers the current changes in the AdTech industry, the need to adapt to them, and the search for new solutions and technologies for monetization.

Future Prospects

The AdTech market will continue to adapt to new realities, including the discontinuation of third-party cookies. This could lead to the development of new formats and targeting methods, as well as an increased focus on user data protection and improving the user experience.

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